Yahoo Finance MasterCard (MA) Dips More Than Broader Markets: What You Should Know
MasterCard (MA) closed at $375.14 in the latest trading session, marking a -0.77% move from the prior day. This move lagged the S&P 500's daily loss of 0.11%.
Prior to today's trading, shares of the processor of debit and credit card payments had gained 2.95% over the past month. This has lagged the Business Services sector's gain of 3.44% and outpaced the S&P 500's gain of 2.23% in that time.
Investors will be hoping for strength from MA as it approaches its next earnings release. On that day, MA is projected to report earnings of $1.71 per share, which would represent year-over-year growth of 25.74%. Meanwhile, our latest consensus estimate is calling for revenue of $4.35 billion, up 30.32% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.75 per share and revenue of $18.33 billion. These totals would mark changes of +20.53% and +19.78%, respectively, from last year.
Any recent changes to analyst estimates for MA should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.43% lower within the past month. MA currently has a Zacks Rank of #3 (Hold).
Investors should also note MA's current valuation metrics, including its Forward P/E ratio of 48.78. This valuation marks a premium compared to its industry's average Forward P/E of 23.39.
We can also see that MA currently has a PEG ratio of 2.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial Transaction Services industry currently had an average PEG ratio of 1.29 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 192, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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