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MasterCard (MA) Stock Sinks As Market Gains: What You Should Know
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MasterCard (MA - Free Report) closed at $467.54 in the latest trading session, marking a -0.86% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 1.03% for the day. Elsewhere, the Dow gained 0.34%, while the tech-heavy Nasdaq added 1.51%.
The processor of debit and credit card payments's stock has climbed by 2.1% in the past month, falling short of the Business Services sector's gain of 6.35% and the S&P 500's gain of 3.21%.
Analysts and investors alike will be keeping a close eye on the performance of MasterCard in its upcoming earnings disclosure. The company is expected to report EPS of $3.23, up 15.36% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.34 billion, up 10.27% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $14.37 per share and a revenue of $28.12 billion, demonstrating changes of +17.21% and +12.06%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for MasterCard. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.14% upward. MasterCard is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, MasterCard currently has a Forward P/E ratio of 32.83. This valuation marks a premium compared to its industry's average Forward P/E of 13.5.
Also, we should mention that MA has a PEG ratio of 1.79. 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. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 1.15.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 51, this industry ranks in the top 21% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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MasterCard (MA) Stock Sinks As Market Gains: What You Should Know
MasterCard (MA - Free Report) closed at $467.54 in the latest trading session, marking a -0.86% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 1.03% for the day. Elsewhere, the Dow gained 0.34%, while the tech-heavy Nasdaq added 1.51%.
The processor of debit and credit card payments's stock has climbed by 2.1% in the past month, falling short of the Business Services sector's gain of 6.35% and the S&P 500's gain of 3.21%.
Analysts and investors alike will be keeping a close eye on the performance of MasterCard in its upcoming earnings disclosure. The company is expected to report EPS of $3.23, up 15.36% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.34 billion, up 10.27% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $14.37 per share and a revenue of $28.12 billion, demonstrating changes of +17.21% and +12.06%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for MasterCard. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.14% upward. MasterCard is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, MasterCard currently has a Forward P/E ratio of 32.83. This valuation marks a premium compared to its industry's average Forward P/E of 13.5.
Also, we should mention that MA has a PEG ratio of 1.79. 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. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 1.15.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 51, this industry ranks in the top 21% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.