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Here's Why MasterCard (MA) Gained But Lagged the Market Today
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MasterCard (MA - Free Report) closed the most recent trading day at $424.68, moving +0.93% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 1.37%. Elsewhere, the Dow gained 1.4%, while the tech-heavy Nasdaq added 1.38%.
The processor of debit and credit card payments's stock has climbed by 5.81% in the past month, falling short of the Business Services sector's gain of 8.25% and outpacing the S&P 500's gain of 5.37%.
Investors will be eagerly watching for the performance of MasterCard in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.07, signifying a 15.85% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $6.45 billion, up 10.89% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.16 per share and a revenue of $25 billion, indicating changes of +14.18% and +12.43%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for MasterCard. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection remained stagnant. MasterCard is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, MasterCard is currently being traded at a Forward P/E ratio of 34.59. For comparison, its industry has an average Forward P/E of 14.2, which means MasterCard is trading at a premium to the group.
We can additionally observe that MA currently boasts a PEG ratio of 1.91. 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 1.18 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 134, which puts it in the bottom 47% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Here's Why MasterCard (MA) Gained But Lagged the Market Today
MasterCard (MA - Free Report) closed the most recent trading day at $424.68, moving +0.93% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 1.37%. Elsewhere, the Dow gained 1.4%, while the tech-heavy Nasdaq added 1.38%.
The processor of debit and credit card payments's stock has climbed by 5.81% in the past month, falling short of the Business Services sector's gain of 8.25% and outpacing the S&P 500's gain of 5.37%.
Investors will be eagerly watching for the performance of MasterCard in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.07, signifying a 15.85% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $6.45 billion, up 10.89% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.16 per share and a revenue of $25 billion, indicating changes of +14.18% and +12.43%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for MasterCard. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection remained stagnant. MasterCard is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, MasterCard is currently being traded at a Forward P/E ratio of 34.59. For comparison, its industry has an average Forward P/E of 14.2, which means MasterCard is trading at a premium to the group.
We can additionally observe that MA currently boasts a PEG ratio of 1.91. 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 1.18 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 134, which puts it in the bottom 47% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.