We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MasterCard (MA) Ascends But Remains Behind Market: Some Facts to Note
Read MoreHide Full Article
The most recent trading session ended with MasterCard (MA - Free Report) standing at $488.64, reflecting a +0.12% shift from the previouse trading day's closing. The stock lagged the S&P 500's daily gain of 0.32%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.2%.
The processor of debit and credit card payments's stock has climbed by 6.32% in the past month, exceeding the Business Services sector's gain of 5.27% and the S&P 500's gain of 5.11%.
The investment community will be paying close attention to the earnings performance of MasterCard in its upcoming release. The company's earnings per share (EPS) are projected to be $3.23, reflecting a 15.36% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $6.34 billion, indicating a 10.27% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $14.37 per share and a revenue of $28.12 billion, representing changes of +17.21% and +12.06%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for MasterCard. These revisions help to show the ever-changing nature of near-term business trends. 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 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, MasterCard is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, MasterCard is currently exchanging hands at a Forward P/E ratio of 33.97. Its industry sports an average Forward P/E of 14.57, so one might conclude that MasterCard is trading at a premium comparatively.
One should further note that MA currently holds a PEG ratio of 1.85. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 1.23.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 45, placing it within the top 18% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
MasterCard (MA) Ascends But Remains Behind Market: Some Facts to Note
The most recent trading session ended with MasterCard (MA - Free Report) standing at $488.64, reflecting a +0.12% shift from the previouse trading day's closing. The stock lagged the S&P 500's daily gain of 0.32%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.2%.
The processor of debit and credit card payments's stock has climbed by 6.32% in the past month, exceeding the Business Services sector's gain of 5.27% and the S&P 500's gain of 5.11%.
The investment community will be paying close attention to the earnings performance of MasterCard in its upcoming release. The company's earnings per share (EPS) are projected to be $3.23, reflecting a 15.36% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $6.34 billion, indicating a 10.27% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $14.37 per share and a revenue of $28.12 billion, representing changes of +17.21% and +12.06%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for MasterCard. These revisions help to show the ever-changing nature of near-term business trends. 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 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, MasterCard is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, MasterCard is currently exchanging hands at a Forward P/E ratio of 33.97. Its industry sports an average Forward P/E of 14.57, so one might conclude that MasterCard is trading at a premium comparatively.
One should further note that MA currently holds a PEG ratio of 1.85. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 1.23.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 45, placing it within the top 18% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.