MasterCard (MA) closed at $202.43 in the latest trading session, marking a -1.01% move from the prior day. This change lagged the S&P 500's daily loss of 0.55%. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.42%.
Heading into today, shares of the processor of debit and credit card payments had lost 7.61% over the past month, lagging the Business Services sector's loss of 7.1% and the S&P 500's loss of 5.71% in that time.
MA will be looking to display strength as it nears its next earnings release, which is expected to be October 30, 2018. The company is expected to report EPS of $1.68, up 25.37% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.86 billion, up 13.7% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.38 per share and revenue of $14.93 billion, which would represent changes of +39.3% and +19.51%, respectively, from the prior year.
Any recent changes to analyst estimates for MA should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.47% lower. MA is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, MA currently has a Forward P/E ratio of 32.07. This represents a premium compared to its industry's average Forward P/E of 21.18.
It is also worth noting that MA currently has a PEG ratio of 1.77. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.53 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 42% 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.
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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