MasterCard (MA) Stock Moves -0.5%: What You Should Know
MasterCard (MA) closed the most recent trading day at $296.28, moving -0.5% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.8%. At the same time, the Dow lost 0.3%, and the tech-heavy Nasdaq lost 0.03%.
Prior to today's trading, shares of the processor of debit and credit card payments had lost 2.21% over the past month. This has was narrower than the Business Services sector's loss of 8.94% and the S&P 500's loss of 5.13% in that time.
Investors will be hoping for strength from MasterCard as it approaches its next earnings release, which is expected to be October 27, 2022. The company is expected to report EPS of $2.57, up 8.44% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.65 billion, up 13.37% from the year-ago period.
MA's full-year Zacks Consensus Estimates are calling for earnings of $10.60 per share and revenue of $22.19 billion. These results would represent year-over-year changes of +26.19% and +17.51%, respectively.
Investors might also notice recent changes to analyst estimates for MasterCard. These recent revisions tend to reflect the evolving nature of short-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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% lower. MasterCard is currently a Zacks Rank #3 (Hold).
In terms of valuation, MasterCard is currently trading at a Forward P/E ratio of 28.09. Its industry sports an average Forward P/E of 15.42, so we one might conclude that MasterCard is trading at a premium comparatively.
Also, we should mention that MA has a PEG ratio of 1.39. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial Transaction Services industry currently had an average PEG ratio of 0.93 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 156, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Want 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 Report
To read this article on Zacks.com click here.
Zacks Investment Research
