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MasterCard (MA) Surpasses Market Returns: Some Facts Worth Knowing
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In the latest trading session, MasterCard (MA - Free Report) closed at $561.94, marking a +2.11% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.52% for the day. Elsewhere, the Dow gained 0.63%, while the tech-heavy Nasdaq added 0.48%.
Shares of the processor of debit and credit card payments witnessed a loss of 6.02% over the previous month, trailing the performance of the Business Services sector with its loss of 1.89%, and the S&P 500's gain of 4.27%.
Market participants will be closely following the financial results of MasterCard in its upcoming release. In that report, analysts expect MasterCard to post earnings of $4.05 per share. This would mark year-over-year growth of 12.81%. Alongside, our most recent consensus estimate is anticipating revenue of $7.95 billion, indicating a 14.21% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $15.98 per share and a revenue of $31.85 billion, signifying shifts of +9.45% and +13.08%, respectively, from the last 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 such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.04% higher. At present, MasterCard boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, MasterCard is holding a Forward P/E ratio of 34.45. Its industry sports an average Forward P/E of 16.22, so one might conclude that MasterCard is trading at a premium comparatively.
It's also important to note that MA currently trades at a PEG ratio of 2.4. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 1.26.
The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 41, positioning it in the top 17% 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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MasterCard (MA) Surpasses Market Returns: Some Facts Worth Knowing
In the latest trading session, MasterCard (MA - Free Report) closed at $561.94, marking a +2.11% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.52% for the day. Elsewhere, the Dow gained 0.63%, while the tech-heavy Nasdaq added 0.48%.
Shares of the processor of debit and credit card payments witnessed a loss of 6.02% over the previous month, trailing the performance of the Business Services sector with its loss of 1.89%, and the S&P 500's gain of 4.27%.
Market participants will be closely following the financial results of MasterCard in its upcoming release. In that report, analysts expect MasterCard to post earnings of $4.05 per share. This would mark year-over-year growth of 12.81%. Alongside, our most recent consensus estimate is anticipating revenue of $7.95 billion, indicating a 14.21% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $15.98 per share and a revenue of $31.85 billion, signifying shifts of +9.45% and +13.08%, respectively, from the last 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 such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.04% higher. At present, MasterCard boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, MasterCard is holding a Forward P/E ratio of 34.45. Its industry sports an average Forward P/E of 16.22, so one might conclude that MasterCard is trading at a premium comparatively.
It's also important to note that MA currently trades at a PEG ratio of 2.4. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 1.26.
The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 41, positioning it in the top 17% 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.