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Here's Why MasterCard (MA) Fell More Than Broader Market
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MasterCard (MA - Free Report) closed at $421.89 in the latest trading session, marking a -1.08% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.57%. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq lost 1.64%.
Shares of the processor of debit and credit card payments witnessed a gain of 4.48% over the previous month, beating the performance of the Business Services sector with its gain of 4.19% and the S&P 500's gain of 4%.
Analysts and investors alike will be keeping a close eye on the performance of MasterCard in its upcoming earnings disclosure. In that report, analysts expect MasterCard to post earnings of $3.07 per share. This would mark year-over-year growth of 15.85%. Meanwhile, our latest consensus estimate is calling for revenue of $6.45 billion, up 10.89% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for MasterCard. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, MasterCard possesses a Zacks Rank of #3 (Hold).
Digging into valuation, MasterCard currently has a Forward P/E ratio of 30.09. This represents a premium compared to its industry's average Forward P/E of 12.84.
One should further note that MA currently holds a PEG ratio of 1.66. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial Transaction Services industry currently had an average PEG ratio of 1.16 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 93, this industry ranks in the top 37% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Here's Why MasterCard (MA) Fell More Than Broader Market
MasterCard (MA - Free Report) closed at $421.89 in the latest trading session, marking a -1.08% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.57%. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq lost 1.64%.
Shares of the processor of debit and credit card payments witnessed a gain of 4.48% over the previous month, beating the performance of the Business Services sector with its gain of 4.19% and the S&P 500's gain of 4%.
Analysts and investors alike will be keeping a close eye on the performance of MasterCard in its upcoming earnings disclosure. In that report, analysts expect MasterCard to post earnings of $3.07 per share. This would mark year-over-year growth of 15.85%. Meanwhile, our latest consensus estimate is calling for revenue of $6.45 billion, up 10.89% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for MasterCard. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, MasterCard possesses a Zacks Rank of #3 (Hold).
Digging into valuation, MasterCard currently has a Forward P/E ratio of 30.09. This represents a premium compared to its industry's average Forward P/E of 12.84.
One should further note that MA currently holds a PEG ratio of 1.66. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial Transaction Services industry currently had an average PEG ratio of 1.16 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 93, this industry ranks in the top 37% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.