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Why MasterCard (MA) Dipped More Than Broader Market Today
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MasterCard (MA - Free Report) ended the recent trading session at $551.47, demonstrating a -2.15% change from the preceding day's closing price. This change lagged the S&P 500's 0.25% loss on the day. On the other hand, the Dow registered a loss of 0.86%, and the technology-centric Nasdaq increased by 0.24%.
Shares of the processor of debit and credit card payments witnessed a loss of 3.02% over the previous month, beating the performance of the Business Services sector with its loss of 5.76%, and underperforming the S&P 500's loss of 0.42%.
Analysts and investors alike will be keeping a close eye on the performance of MasterCard in its upcoming earnings disclosure. The company is expected to report EPS of $5.13, up 17.12% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $9.62 billion, indicating a 11.86% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $19.9 per share and a revenue of $37.24 billion, demonstrating changes of +16.99% and +13.57%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for MasterCard. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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, 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 past month, the Zacks Consensus EPS estimate remained stagnant. At present, MasterCard boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, MasterCard is currently exchanging hands at a Forward P/E ratio of 28.32. For comparison, its industry has an average Forward P/E of 13.68, which means MasterCard is trading at a premium to the group.
It's also important to note that MA currently trades at a PEG ratio of 1.61. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 0.76.
The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 166, positioning it in the bottom 33% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Why MasterCard (MA) Dipped More Than Broader Market Today
MasterCard (MA - Free Report) ended the recent trading session at $551.47, demonstrating a -2.15% change from the preceding day's closing price. This change lagged the S&P 500's 0.25% loss on the day. On the other hand, the Dow registered a loss of 0.86%, and the technology-centric Nasdaq increased by 0.24%.
Shares of the processor of debit and credit card payments witnessed a loss of 3.02% over the previous month, beating the performance of the Business Services sector with its loss of 5.76%, and underperforming the S&P 500's loss of 0.42%.
Analysts and investors alike will be keeping a close eye on the performance of MasterCard in its upcoming earnings disclosure. The company is expected to report EPS of $5.13, up 17.12% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $9.62 billion, indicating a 11.86% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $19.9 per share and a revenue of $37.24 billion, demonstrating changes of +16.99% and +13.57%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for MasterCard. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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, 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 past month, the Zacks Consensus EPS estimate remained stagnant. At present, MasterCard boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, MasterCard is currently exchanging hands at a Forward P/E ratio of 28.32. For comparison, its industry has an average Forward P/E of 13.68, which means MasterCard is trading at a premium to the group.
It's also important to note that MA currently trades at a PEG ratio of 1.61. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 0.76.
The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 166, positioning it in the bottom 33% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.