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.
Why MasterCard (MA) Dipped More Than Broader Market Today
Read MoreHide Full Article
MasterCard (MA - Free Report) ended the recent trading session at $484.24, demonstrating a -3.3% change from the preceding day's closing price. This change lagged the S&P 500's 1.67% loss on the day. Meanwhile, the Dow lost 1.73%, and the Nasdaq, a tech-heavy index, lost 2.15%.
Prior to today's trading, shares of the processor of debit and credit card payments had lost 2.72% was narrower than the Business Services sector's loss of 5.83% and the S&P 500's loss of 6.15%.
The investment community will be closely monitoring the performance of MasterCard in its forthcoming earnings report. The company's upcoming EPS is projected at $4.38, signifying a 17.43% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $8.29 billion, up 14.41% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $19.49 per share and a revenue of $36.96 billion, representing changes of +14.58% and +12.73%, respectively, from the prior year.
Any recent changes to analyst estimates for MasterCard should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.28% higher. MasterCard is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note MasterCard's current valuation metrics, including its Forward P/E ratio of 25.7. This valuation marks a premium compared to its industry average Forward P/E of 9.5.
It's also important to note that MA currently trades at a PEG ratio of 1.61. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 0.8.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 27% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Why MasterCard (MA) Dipped More Than Broader Market Today
MasterCard (MA - Free Report) ended the recent trading session at $484.24, demonstrating a -3.3% change from the preceding day's closing price. This change lagged the S&P 500's 1.67% loss on the day. Meanwhile, the Dow lost 1.73%, and the Nasdaq, a tech-heavy index, lost 2.15%.
Prior to today's trading, shares of the processor of debit and credit card payments had lost 2.72% was narrower than the Business Services sector's loss of 5.83% and the S&P 500's loss of 6.15%.
The investment community will be closely monitoring the performance of MasterCard in its forthcoming earnings report. The company's upcoming EPS is projected at $4.38, signifying a 17.43% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $8.29 billion, up 14.41% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $19.49 per share and a revenue of $36.96 billion, representing changes of +14.58% and +12.73%, respectively, from the prior year.
Any recent changes to analyst estimates for MasterCard should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.28% higher. MasterCard is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note MasterCard's current valuation metrics, including its Forward P/E ratio of 25.7. This valuation marks a premium compared to its industry average Forward P/E of 9.5.
It's also important to note that MA currently trades at a PEG ratio of 1.61. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 0.8.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 27% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.