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Why the Market Dipped But MasterCard (MA) Gained Today
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MasterCard (MA - Free Report) closed at $475.61 in the latest trading session, marking a +0.58% move from the prior day. This change outpaced the S&P 500's 0.19% loss on the day. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq depreciated by 0.54%.
Heading into today, shares of the processor of debit and credit card payments had gained 2.7% over the past month, outpacing the Business Services sector's gain of 2.68% and lagging the S&P 500's gain of 3.18% in that time.
The investment community will be paying close attention to the earnings performance of MasterCard in its upcoming release. On that day, MasterCard is projected to report earnings of $3.23 per share, which would represent year-over-year growth of 15.36%. Our most recent consensus estimate is calling for quarterly revenue of $6.34 billion, up 10.27% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.36 per share and a revenue of $28.12 billion, signifying shifts of +17.13% and +12.06%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for MasterCard. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.14% increase. MasterCard is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, MasterCard is holding a Forward P/E ratio of 32.92. This signifies a premium in comparison to the average Forward P/E of 13.75 for its industry.
Investors should also note that MA has a PEG ratio of 1.79 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Financial Transaction Services was holding an average PEG ratio of 1.25 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 43, finds itself in the top 18% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Why the Market Dipped But MasterCard (MA) Gained Today
MasterCard (MA - Free Report) closed at $475.61 in the latest trading session, marking a +0.58% move from the prior day. This change outpaced the S&P 500's 0.19% loss on the day. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq depreciated by 0.54%.
Heading into today, shares of the processor of debit and credit card payments had gained 2.7% over the past month, outpacing the Business Services sector's gain of 2.68% and lagging the S&P 500's gain of 3.18% in that time.
The investment community will be paying close attention to the earnings performance of MasterCard in its upcoming release. On that day, MasterCard is projected to report earnings of $3.23 per share, which would represent year-over-year growth of 15.36%. Our most recent consensus estimate is calling for quarterly revenue of $6.34 billion, up 10.27% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.36 per share and a revenue of $28.12 billion, signifying shifts of +17.13% and +12.06%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for MasterCard. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.14% increase. MasterCard is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, MasterCard is holding a Forward P/E ratio of 32.92. This signifies a premium in comparison to the average Forward P/E of 13.75 for its industry.
Investors should also note that MA has a PEG ratio of 1.79 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Financial Transaction Services was holding an average PEG ratio of 1.25 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 43, finds itself in the top 18% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.