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MasterCard (MA) Gains As Market Dips: What You Should Know
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MasterCard (MA - Free Report) closed the most recent trading day at $394.73, moving +0.2% from the previous trading session. This change outpaced the S&P 500's 0.2% loss on the day. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 9.78%.
Coming into today, shares of the processor of debit and credit card payments had gained 3.68% in the past month. In that same time, the Business Services sector gained 5.09%, while the S&P 500 gained 4.16%.
Investors will be hoping for strength from MasterCard as it approaches its next earnings release. In that report, analysts expect MasterCard to post earnings of $2.96 per share. This would mark year-over-year growth of 15.63%. Meanwhile, our latest consensus estimate is calling for revenue of $6.18 billion, up 12.44% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.24 per share and revenue of $25.15 billion. These totals would mark changes of +14.93% and +13.1%, respectively, from last year.
Any recent changes to analyst estimates for MasterCard should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% lower. MasterCard is currently a Zacks Rank #3 (Hold).
Looking at its valuation, MasterCard is holding a Forward P/E ratio of 32.19. Its industry sports an average Forward P/E of 14.67, so we one might conclude that MasterCard is trading at a premium comparatively.
Investors should also note that MA has a PEG ratio of 1.84 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial Transaction Services industry currently had an average PEG ratio of 1.22 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 188, which puts it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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MasterCard (MA) Gains As Market Dips: What You Should Know
MasterCard (MA - Free Report) closed the most recent trading day at $394.73, moving +0.2% from the previous trading session. This change outpaced the S&P 500's 0.2% loss on the day. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 9.78%.
Coming into today, shares of the processor of debit and credit card payments had gained 3.68% in the past month. In that same time, the Business Services sector gained 5.09%, while the S&P 500 gained 4.16%.
Investors will be hoping for strength from MasterCard as it approaches its next earnings release. In that report, analysts expect MasterCard to post earnings of $2.96 per share. This would mark year-over-year growth of 15.63%. Meanwhile, our latest consensus estimate is calling for revenue of $6.18 billion, up 12.44% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.24 per share and revenue of $25.15 billion. These totals would mark changes of +14.93% and +13.1%, respectively, from last year.
Any recent changes to analyst estimates for MasterCard should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% lower. MasterCard is currently a Zacks Rank #3 (Hold).
Looking at its valuation, MasterCard is holding a Forward P/E ratio of 32.19. Its industry sports an average Forward P/E of 14.67, so we one might conclude that MasterCard is trading at a premium comparatively.
Investors should also note that MA has a PEG ratio of 1.84 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial Transaction Services industry currently had an average PEG ratio of 1.22 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 188, which puts it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.