Why MasterCard (MA) Dipped More Than Broader Market Today

MasterCard (MA) ended the recent trading session at $484.24, demonstrating a -3.3% change from the preceding day's closing price. This change lagged the S&P 500's 1.67% loss on the day. Meanwhile, the Dow lost 1.73%, and the Nasdaq, a tech-heavy index, lost 2.15%. Prior to today's trading, shares of the processor of debit and credit card payments had lost 2.72% was narrower than the Business Services sector's loss of 5.83% and the S&P 500's loss of 6.15%.The investment community will be closely monitoring the performance of MasterCard in its forthcoming earnings report. The company's upcoming EPS is projected at $4.38, signifying a 17.43% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $8.29 billion, up 14.41% from the prior-year quarter. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $19.49 per share and a revenue of $36.96 billion, representing changes of +14.58% and +12.73%, respectively, from the prior year. Any recent changes to analyst estimates for MasterCard should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.28% higher. MasterCard is holding a Zacks Rank of #3 (Hold) right now. Investors should also note MasterCard's current valuation metrics, including its Forward P/E ratio of 25.7. This valuation marks a premium compared to its industry average Forward P/E of 9.5. It's also important to note that MA currently trades at a PEG ratio of 1.61. 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. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 0.8. The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 27% of all 250+ industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mastercard Incorporated (MA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks