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Why MasterCard (MA) Outpaced the Stock Market Today
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The latest trading session saw MasterCard (MA - Free Report) ending at $424.36, denoting a +0.16% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.14%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 0.16%.
Prior to today's trading, shares of the processor of debit and credit card payments had gained 3.58% over the past month. This has lagged the Business Services sector's gain of 6.49% and the S&P 500's gain of 4.89% in that time.
The investment community will be paying close attention to the earnings performance of MasterCard in its upcoming release. The company is expected to report EPS of $3.07, up 15.85% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $6.45 billion, reflecting a 10.89% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.16 per share and a revenue of $25 billion, representing changes of +14.18% and +12.43%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for MasterCard. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. MasterCard is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, MasterCard is presently being traded at a Forward P/E ratio of 34.83. This valuation marks a premium compared to its industry's average Forward P/E of 15.62.
It's also important to note that MA currently trades at a PEG ratio of 1.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial Transaction Services industry currently had an average PEG ratio of 1.27 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 81, this industry ranks in the top 33% of all industries, numbering over 250.
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.
To follow MA in the coming trading sessions, be sure to utilize Zacks.com.
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Why MasterCard (MA) Outpaced the Stock Market Today
The latest trading session saw MasterCard (MA - Free Report) ending at $424.36, denoting a +0.16% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.14%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 0.16%.
Prior to today's trading, shares of the processor of debit and credit card payments had gained 3.58% over the past month. This has lagged the Business Services sector's gain of 6.49% and the S&P 500's gain of 4.89% in that time.
The investment community will be paying close attention to the earnings performance of MasterCard in its upcoming release. The company is expected to report EPS of $3.07, up 15.85% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $6.45 billion, reflecting a 10.89% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.16 per share and a revenue of $25 billion, representing changes of +14.18% and +12.43%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for MasterCard. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. MasterCard is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, MasterCard is presently being traded at a Forward P/E ratio of 34.83. This valuation marks a premium compared to its industry's average Forward P/E of 15.62.
It's also important to note that MA currently trades at a PEG ratio of 1.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial Transaction Services industry currently had an average PEG ratio of 1.27 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 81, this industry ranks in the top 33% of all industries, numbering over 250.
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.
To follow MA in the coming trading sessions, be sure to utilize Zacks.com.