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MasterCard (MA) Falls More Steeply Than Broader Market: What Investors Need to Know
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MasterCard (MA - Free Report) ended the recent trading session at $484.09, demonstrating a -1.16% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.37%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, lost 1.33%.
Shares of the processor of debit and credit card payments witnessed a loss of 1.76% over the previous month, trailing the performance of the Business Services sector with its loss of 1.59%, and the S&P 500's gain of 2.02%.
Market participants will be closely following the financial results of MasterCard in its upcoming release. The company is expected to report EPS of $4.74, up 14.22% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $9.06 billion, indicating a 11.41% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $19.6 per share and a revenue of $36.99 billion, demonstrating changes of +15.23% and +12.8%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. MasterCard currently has a Zacks Rank of #3 (Hold).
With respect to valuation, MasterCard is currently being traded at a Forward P/E ratio of 24.99. This expresses a premium compared to the average Forward P/E of 10.63 of its industry.
It is also worth noting that MA currently has a PEG ratio of 1.53. 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 0.75 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 68, putting it in the top 28% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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MasterCard (MA) Falls More Steeply Than Broader Market: What Investors Need to Know
MasterCard (MA - Free Report) ended the recent trading session at $484.09, demonstrating a -1.16% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.37%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, lost 1.33%.
Shares of the processor of debit and credit card payments witnessed a loss of 1.76% over the previous month, trailing the performance of the Business Services sector with its loss of 1.59%, and the S&P 500's gain of 2.02%.
Market participants will be closely following the financial results of MasterCard in its upcoming release. The company is expected to report EPS of $4.74, up 14.22% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $9.06 billion, indicating a 11.41% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $19.6 per share and a revenue of $36.99 billion, demonstrating changes of +15.23% and +12.8%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. MasterCard currently has a Zacks Rank of #3 (Hold).
With respect to valuation, MasterCard is currently being traded at a Forward P/E ratio of 24.99. This expresses a premium compared to the average Forward P/E of 10.63 of its industry.
It is also worth noting that MA currently has a PEG ratio of 1.53. 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 0.75 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 68, putting it in the top 28% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.