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MasterCard (MA) Rises But Trails Market: What Investors Should Know
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MasterCard (MA - Free Report) ended the recent trading session at $425.47, demonstrating a +0.25% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.66%.
Heading into today, shares of the processor of debit and credit card payments had gained 4.95% over the past month, lagging the Business Services sector's gain of 7.2% and the S&P 500's gain of 5.16% in that time.
The investment community will be closely monitoring the performance of MasterCard in its forthcoming earnings report. The company's upcoming EPS is projected at $3.07, signifying a 15.85% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.45 billion, indicating a 10.89% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.16 per share and revenue of $25 billion, indicating changes of +14.18% and +12.43%, respectively, compared to the previous year.
Any recent changes to analyst estimates for MasterCard should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, MasterCard possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that MasterCard has a Forward P/E ratio of 34.9 right now. This indicates a premium in contrast to its industry's Forward P/E of 14.77.
Meanwhile, MA's PEG ratio is currently 1.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.23 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 142, finds itself in the bottom 44% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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MasterCard (MA) Rises But Trails Market: What Investors Should Know
MasterCard (MA - Free Report) ended the recent trading session at $425.47, demonstrating a +0.25% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.66%.
Heading into today, shares of the processor of debit and credit card payments had gained 4.95% over the past month, lagging the Business Services sector's gain of 7.2% and the S&P 500's gain of 5.16% in that time.
The investment community will be closely monitoring the performance of MasterCard in its forthcoming earnings report. The company's upcoming EPS is projected at $3.07, signifying a 15.85% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.45 billion, indicating a 10.89% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.16 per share and revenue of $25 billion, indicating changes of +14.18% and +12.43%, respectively, compared to the previous year.
Any recent changes to analyst estimates for MasterCard should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, MasterCard possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that MasterCard has a Forward P/E ratio of 34.9 right now. This indicates a premium in contrast to its industry's Forward P/E of 14.77.
Meanwhile, MA's PEG ratio is currently 1.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.23 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 142, finds itself in the bottom 44% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.