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MasterCard (MA) Rises But Trails Market: What Investors Should Know
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The most recent trading session ended with MasterCard (MA - Free Report) standing at $491.27, reflecting a +0.37% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.4%. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.6%.
Heading into today, shares of the processor of debit and credit card payments had gained 3.74% over the past month, lagging the Business Services sector's gain of 4.05% and outpacing the S&P 500's gain of 1.71% in that time.
Analysts and investors alike will be keeping a close eye on the performance of MasterCard in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.72, indicating a 9.73% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $7.24 billion, indicating a 10.8% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.29 per share and revenue of $27.92 billion. These totals would mark changes of +16.56% and +11.23%, respectively, from last year.
Any recent changes to analyst estimates for MasterCard should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. MasterCard currently has a Zacks Rank of #3 (Hold).
In terms of valuation, MasterCard is presently being traded at a Forward P/E ratio of 34.24. This denotes a premium relative to the industry's average Forward P/E of 16.39.
It's also important to note that MA currently trades at a PEG ratio of 1.93. 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 average PEG ratio for the Financial Transaction Services industry stood at 1.25 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 56, this industry ranks in the top 23% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MA in the coming trading sessions, be sure to utilize Zacks.com.
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MasterCard (MA) Rises But Trails Market: What Investors Should Know
The most recent trading session ended with MasterCard (MA - Free Report) standing at $491.27, reflecting a +0.37% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.4%. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.6%.
Heading into today, shares of the processor of debit and credit card payments had gained 3.74% over the past month, lagging the Business Services sector's gain of 4.05% and outpacing the S&P 500's gain of 1.71% in that time.
Analysts and investors alike will be keeping a close eye on the performance of MasterCard in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.72, indicating a 9.73% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $7.24 billion, indicating a 10.8% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.29 per share and revenue of $27.92 billion. These totals would mark changes of +16.56% and +11.23%, respectively, from last year.
Any recent changes to analyst estimates for MasterCard should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. MasterCard currently has a Zacks Rank of #3 (Hold).
In terms of valuation, MasterCard is presently being traded at a Forward P/E ratio of 34.24. This denotes a premium relative to the industry's average Forward P/E of 16.39.
It's also important to note that MA currently trades at a PEG ratio of 1.93. 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 average PEG ratio for the Financial Transaction Services industry stood at 1.25 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 56, this industry ranks in the top 23% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MA in the coming trading sessions, be sure to utilize Zacks.com.