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MasterCard (MA) Surpasses Market Returns: Some Facts Worth Knowing
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In the latest trading session, MasterCard (MA - Free Report) closed at $439.75, marking a +0.68% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.22%. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.32%.
The processor of debit and credit card payments's stock has climbed by 2.99% in the past month, exceeding the Business Services sector's gain of 0.42% and the S&P 500's gain of 1.61%.
The investment community will be paying close attention to the earnings performance of MasterCard in its upcoming release. The company is slated to reveal its earnings on January 31, 2024. It is anticipated that the company will report an EPS of $3.08, marking a 16.23% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.46 billion, showing a 10.99% escalation compared to the year-ago quarter.
It's also important for investors to be aware of any recent modifications to analyst estimates for MasterCard. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.17% higher. As of now, MasterCard holds a Zacks Rank of #3 (Hold).
Digging into valuation, MasterCard currently has a Forward P/E ratio of 30.76. This expresses a premium compared to the average Forward P/E of 12.69 of its industry.
It is also worth noting that MA currently has a PEG ratio of 1.93. 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 1.12 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 99, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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MasterCard (MA) Surpasses Market Returns: Some Facts Worth Knowing
In the latest trading session, MasterCard (MA - Free Report) closed at $439.75, marking a +0.68% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.22%. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.32%.
The processor of debit and credit card payments's stock has climbed by 2.99% in the past month, exceeding the Business Services sector's gain of 0.42% and the S&P 500's gain of 1.61%.
The investment community will be paying close attention to the earnings performance of MasterCard in its upcoming release. The company is slated to reveal its earnings on January 31, 2024. It is anticipated that the company will report an EPS of $3.08, marking a 16.23% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.46 billion, showing a 10.99% escalation compared to the year-ago quarter.
It's also important for investors to be aware of any recent modifications to analyst estimates for MasterCard. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.17% higher. As of now, MasterCard holds a Zacks Rank of #3 (Hold).
Digging into valuation, MasterCard currently has a Forward P/E ratio of 30.76. This expresses a premium compared to the average Forward P/E of 12.69 of its industry.
It is also worth noting that MA currently has a PEG ratio of 1.93. 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 1.12 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 99, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.