MasterCard (MA) closed the most recent trading day at $290.18, moving -1.86% from the previous trading session. This move lagged the S&P 500's daily loss of 0.94%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 2.13%.
Prior to today's trading, shares of the processor of debit and credit card payments had gained 1.52% over the past month. This has outpaced the Business Services sector's loss of 1.13% and the S&P 500's gain of 0.02% in that time.
MA will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.13, down 40.21% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.23 billion, down 21.54% from the year-ago period.
MA's full-year Zacks Consensus Estimates are calling for earnings of $6.45 per share and revenue of $15.52 billion. These results would represent year-over-year changes of -16.99% and -8.07%, respectively.
Investors should also note any recent changes to analyst estimates for MA. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 1.13% higher within the past month. MA is currently a Zacks Rank #3 (Hold).
In terms of valuation, MA is currently trading at a Forward P/E ratio of 45.84. This represents a premium compared to its industry's average Forward P/E of 26.35.
Meanwhile, MA's PEG ratio is currently 3.57. 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 1.84 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 41, which puts it in the top 17% 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.
To follow MA in the coming trading sessions, be sure to utilize Zacks.com.
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Mastercard Incorporated (MA) : Free Stock Analysis Report
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