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Why the Market Dipped But MasterCard (MA) Gained Today
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In the latest trading session, MasterCard (MA - Free Report) closed at $479.48, marking a +0.81% move from the previous day. This change outpaced the S&P 500's 0.29% loss on the day. At the same time, the Dow lost 0.35%, and the tech-heavy Nasdaq lost 0.3%.
Prior to today's trading, shares of the processor of debit and credit card payments had gained 2.24% over the past month. This has lagged the Business Services sector's gain of 4.93% and the S&P 500's gain of 4.42% in that time.
Market participants will be closely following the financial results of MasterCard in its upcoming release. The company is forecasted to report an EPS of $3.23, showcasing a 15.36% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $6.34 billion, up 10.27% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.36 per share and revenue of $28.12 billion, indicating changes of +17.13% and +12.06%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for MasterCard. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.14% higher. MasterCard is currently a Zacks Rank #3 (Hold).
In terms of valuation, MasterCard is presently being traded at a Forward P/E ratio of 33.11. This expresses a premium compared to the average Forward P/E of 13.76 of its industry.
Investors should also note that MA has a PEG ratio of 1.8 right now. 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. MA's industry had an average PEG ratio of 1.25 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 42, putting it in the top 17% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Why the Market Dipped But MasterCard (MA) Gained Today
In the latest trading session, MasterCard (MA - Free Report) closed at $479.48, marking a +0.81% move from the previous day. This change outpaced the S&P 500's 0.29% loss on the day. At the same time, the Dow lost 0.35%, and the tech-heavy Nasdaq lost 0.3%.
Prior to today's trading, shares of the processor of debit and credit card payments had gained 2.24% over the past month. This has lagged the Business Services sector's gain of 4.93% and the S&P 500's gain of 4.42% in that time.
Market participants will be closely following the financial results of MasterCard in its upcoming release. The company is forecasted to report an EPS of $3.23, showcasing a 15.36% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $6.34 billion, up 10.27% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.36 per share and revenue of $28.12 billion, indicating changes of +17.13% and +12.06%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for MasterCard. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.14% higher. MasterCard is currently a Zacks Rank #3 (Hold).
In terms of valuation, MasterCard is presently being traded at a Forward P/E ratio of 33.11. This expresses a premium compared to the average Forward P/E of 13.76 of its industry.
Investors should also note that MA has a PEG ratio of 1.8 right now. 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. MA's industry had an average PEG ratio of 1.25 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 42, putting it in the top 17% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.