Yahoo Finance Here's Why MasterCard (MA) Gained But Lagged the Market Today
MasterCard (MA) closed at $462.42 in the latest trading session, marking a +0.07% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 1.02%. Meanwhile, the Dow experienced a rise of 0.4%, and the technology-dominated Nasdaq saw an increase of 2.03%.
The processor of debit and credit card payments's stock has dropped by 4.04% in the past month, exceeding the Business Services sector's loss of 5.04% and lagging the S&P 500's loss of 3.15%.
Analysts and investors alike will be keeping a close eye on the performance of MasterCard in its upcoming earnings disclosure. The company's earnings report is set to go public on May 1, 2024. It is anticipated that the company will report an EPS of $3.22, marking a 15% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $6.33 billion, indicating a 10.05% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.35 per share and revenue of $28.09 billion. These totals would mark changes of +17.05% and +11.94%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for MasterCard. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.01% lower. Currently, MasterCard is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, MasterCard is holding a Forward P/E ratio of 32.2. This denotes a premium relative to the industry's average Forward P/E of 13.28.
Investors should also note that MA has a PEG ratio of 1.75 right now. 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 1.12 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
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Mastercard Incorporated (MA) : Free Stock Analysis Report
