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) Rises Higher Than Market: Key Facts
Read MoreHide Full Article
MasterCard (MA - Free Report) closed at $572.23 in the latest trading session, marking a +1.06% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.88%. Meanwhile, the Dow gained 0.38%, and the Nasdaq, a tech-heavy index, added 1.31%.
Prior to today's trading, shares of the processor of debit and credit card payments had gained 7.26% outpaced the Business Services sector's gain of 6.72% and the S&P 500's gain of 2.48%.
The upcoming earnings release of MasterCard will be of great interest to investors. The company's earnings per share (EPS) are projected to be $4.21, reflecting a 10.21% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.74 billion, indicating a 16.73% increase compared to the same quarter of the previous year.
MA's full-year Zacks Consensus Estimates are calling for earnings of $16.43 per share and revenue of $32.63 billion. These results would represent year-over-year changes of +12.53% and +15.84%, respectively.
Any recent changes to analyst estimates for MasterCard should also be noted by investors. 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 shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 shifted 0.02% downward. MasterCard currently has a Zacks Rank of #3 (Hold).
Investors should also note MasterCard's current valuation metrics, including its Forward P/E ratio of 34.46. For comparison, its industry has an average Forward P/E of 14.71, which means MasterCard is trading at a premium to the group.
Meanwhile, MA's PEG ratio is currently 2.22. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial Transaction Services was holding an average PEG ratio of 1.03 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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) Rises Higher Than Market: Key Facts
MasterCard (MA - Free Report) closed at $572.23 in the latest trading session, marking a +1.06% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.88%. Meanwhile, the Dow gained 0.38%, and the Nasdaq, a tech-heavy index, added 1.31%.
Prior to today's trading, shares of the processor of debit and credit card payments had gained 7.26% outpaced the Business Services sector's gain of 6.72% and the S&P 500's gain of 2.48%.
The upcoming earnings release of MasterCard will be of great interest to investors. The company's earnings per share (EPS) are projected to be $4.21, reflecting a 10.21% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.74 billion, indicating a 16.73% increase compared to the same quarter of the previous year.
MA's full-year Zacks Consensus Estimates are calling for earnings of $16.43 per share and revenue of $32.63 billion. These results would represent year-over-year changes of +12.53% and +15.84%, respectively.
Any recent changes to analyst estimates for MasterCard should also be noted by investors. 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 shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 shifted 0.02% downward. MasterCard currently has a Zacks Rank of #3 (Hold).
Investors should also note MasterCard's current valuation metrics, including its Forward P/E ratio of 34.46. For comparison, its industry has an average Forward P/E of 14.71, which means MasterCard is trading at a premium to the group.
Meanwhile, MA's PEG ratio is currently 2.22. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial Transaction Services was holding an average PEG ratio of 1.03 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.