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MasterCard (MA) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

MasterCard (MA) closed the most recent trading day at $306.88, moving +0.8% from the previous trading session. This change outpaced the S&P 500's 0.43% gain on the day. Meanwhile, the Dow gained 0.5%, and the Nasdaq, a tech-heavy index, added 0.75%.

MA will be looking to display strength as it nears its next earnings release. On that day, MA is projected to report earnings of $1.09 per share, which would represent a year-over-year decline of 42.33%. Our most recent consensus estimate is calling for quarterly revenue of $3.15 billion, down 23.49% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.37 per share and revenue of $15.37 billion. These totals would mark changes of -18.02% and -8.99%, respectively, from last year.

Any recent changes to analyst estimates for MA should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.47% lower. MA is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, MA is currently trading at a Forward P/E ratio of 47.78. For comparison, its industry has an average Forward P/E of 28.28, which means MA is trading at a premium to the group.

Also, we should mention that MA has a PEG ratio of 3.72. 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. The Financial Transaction Services was holding an average PEG ratio of 1.98 at yesterday's closing price.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% 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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