MasterCard (MA) closed at $322.56 in the latest trading session, marking a -0.83% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.07%. Elsewhere, the Dow lost 1.07%, while the tech-heavy Nasdaq lost 0.07%.
Heading into today, shares of the processor of debit and credit card payments had lost 8.66% over the past month, outpacing the Business Services sector's loss of 9.13% and lagging the S&P 500's loss of 3.49% in that time.
MasterCard will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.60, up 9.7% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.68 billion, up 13.92% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.66 per share and revenue of $22.28 billion, which would represent changes of +26.9% and +17.96%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for MasterCard. These revisions help to show the ever-changing nature of near-term business trends. 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. 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.
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 0.02% higher within the past month. MasterCard is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, MasterCard currently has a Forward P/E ratio of 30.52. This represents a premium compared to its industry's average Forward P/E of 16.08.
We can also see that MA currently has a PEG ratio of 1.51. 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 1.04 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 27% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Mastercard Incorporated (MA) : Free Stock Analysis Report
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