Yahoo Finance Why MasterCard (MA) Outpaced the Stock Market Today
MasterCard (MA) closed at $500.99 in the latest trading session, marking a +0.66% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.03%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.2%.
Prior to today's trading, shares of the processor of debit and credit card payments had gained 6.58% over the past month. This has outpaced the Business Services sector's gain of 4.61% and the S&P 500's gain of 1.54% in that time.
The investment community will be paying close attention to the earnings performance of MasterCard in its upcoming release. The company's upcoming EPS is projected at $3.72, signifying a 9.73% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $7.24 billion, up 10.8% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.29 per share and a revenue of $27.92 billion, indicating changes of +16.56% and +11.23%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for MasterCard. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, MasterCard is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, MasterCard is holding a Forward P/E ratio of 34.82. Its industry sports an average Forward P/E of 16.48, so one might conclude that MasterCard is trading at a premium comparatively.
Also, we should mention that MA has a PEG ratio of 1.96. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 1.28.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 66, finds itself in the top 27% echelons 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Mastercard Incorporated (MA) : Free Stock Analysis Report
