MasterCard (MA) Stock Moves -0.08%: What You Should Know
In the latest trading session, MasterCard (MA) closed at $354.33, marking a -0.08% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.12%, and the Nasdaq, a tech-heavy index, lost 3.64%.
Heading into today, shares of the processor of debit and credit card payments had lost 0.24% over the past month, outpacing the Business Services sector's loss of 1.97% and lagging the S&P 500's gain of 0.07% in that time.
Investors will be hoping for strength from MasterCard as it approaches its next earnings release. In that report, analysts expect MasterCard to post earnings of $2.70 per share. This would mark a year-over-year decline of 2.17%. Our most recent consensus estimate is calling for quarterly revenue of $5.62 billion, up 8.77% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.13 per share and revenue of $25.03 billion. These totals would mark changes of +13.9% and +12.56%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for MasterCard. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. MasterCard is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note MasterCard's current valuation metrics, including its Forward P/E ratio of 29.24. Its industry sports an average Forward P/E of 15.28, so we one might conclude that MasterCard is trading at a premium comparatively.
Also, we should mention that MA has a PEG ratio of 1.67. 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 was holding an average PEG ratio of 0.99 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 49, which puts it in the top 20% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Mastercard Incorporated (MA) : Free Stock Analysis Report
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