We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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
MasterCard (MA - Free Report) closed the latest trading day at $548.51, indicating a +0.07% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.38%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.87%.
Shares of the processor of debit and credit card payments witnessed a loss of 4.66% over the previous month, trailing the performance of the Business Services sector with its loss of 4.52% and outperforming the S&P 500's loss of 5.59%.
The upcoming earnings release of MasterCard will be of great interest to investors. It is anticipated that the company will report an EPS of $3.57, marking a 7.85% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.12 billion, up 12.18% from the year-ago period.
MA's full-year Zacks Consensus Estimates are calling for earnings of $15.88 per share and revenue of $31.56 billion. These results would represent year-over-year changes of +8.77% and +12.06%, respectively.
Investors should also note any recent changes to analyst estimates for MasterCard. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% lower. Currently, MasterCard is carrying a Zacks Rank of #4 (Sell).
From a valuation perspective, MasterCard is currently exchanging hands at a Forward P/E ratio of 34.51. This signifies a premium in comparison to the average Forward P/E of 14.72 for its industry.
We can also see that MA currently has a PEG ratio of 2.4. 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.43 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many 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
MasterCard (MA - Free Report) closed the latest trading day at $548.51, indicating a +0.07% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.38%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.87%.
Shares of the processor of debit and credit card payments witnessed a loss of 4.66% over the previous month, trailing the performance of the Business Services sector with its loss of 4.52% and outperforming the S&P 500's loss of 5.59%.
The upcoming earnings release of MasterCard will be of great interest to investors. It is anticipated that the company will report an EPS of $3.57, marking a 7.85% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.12 billion, up 12.18% from the year-ago period.
MA's full-year Zacks Consensus Estimates are calling for earnings of $15.88 per share and revenue of $31.56 billion. These results would represent year-over-year changes of +8.77% and +12.06%, respectively.
Investors should also note any recent changes to analyst estimates for MasterCard. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% lower. Currently, MasterCard is carrying a Zacks Rank of #4 (Sell).
From a valuation perspective, MasterCard is currently exchanging hands at a Forward P/E ratio of 34.51. This signifies a premium in comparison to the average Forward P/E of 14.72 for its industry.
We can also see that MA currently has a PEG ratio of 2.4. 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.43 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.