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Here's Why MasterCard (MA) Fell More Than Broader Market
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MasterCard (MA - Free Report) ended the recent trading session at $570.88, demonstrating a -1.13% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.74% for the day. Meanwhile, the Dow lost 0.63%, and the Nasdaq, a tech-heavy index, lost 0.76%.
The processor of debit and credit card payments's stock has climbed by 5.77% in the past month, exceeding the Business Services sector's gain of 2.83% and the S&P 500's gain of 0.79%.
The investment community will be closely monitoring the performance of MasterCard in its forthcoming earnings report. The company is predicted to post an EPS of $4.21, indicating a 10.21% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $8.77 billion, indicating a 17.05% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $16.43 per share and a revenue of $32.75 billion, demonstrating changes of +12.53% and +16.26%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for MasterCard. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. Currently, MasterCard is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, MasterCard is currently being traded at a Forward P/E ratio of 35.14. This indicates a premium in contrast to its industry's Forward P/E of 14.33.
Meanwhile, MA's PEG ratio is currently 2.27. 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 industry currently had an average PEG ratio of 1.02 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 177, positioning it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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Here's Why MasterCard (MA) Fell More Than Broader Market
MasterCard (MA - Free Report) ended the recent trading session at $570.88, demonstrating a -1.13% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.74% for the day. Meanwhile, the Dow lost 0.63%, and the Nasdaq, a tech-heavy index, lost 0.76%.
The processor of debit and credit card payments's stock has climbed by 5.77% in the past month, exceeding the Business Services sector's gain of 2.83% and the S&P 500's gain of 0.79%.
The investment community will be closely monitoring the performance of MasterCard in its forthcoming earnings report. The company is predicted to post an EPS of $4.21, indicating a 10.21% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $8.77 billion, indicating a 17.05% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $16.43 per share and a revenue of $32.75 billion, demonstrating changes of +12.53% and +16.26%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for MasterCard. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. Currently, MasterCard is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, MasterCard is currently being traded at a Forward P/E ratio of 35.14. This indicates a premium in contrast to its industry's Forward P/E of 14.33.
Meanwhile, MA's PEG ratio is currently 2.27. 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 industry currently had an average PEG ratio of 1.02 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 177, positioning it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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.