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Is Mastercard (MA) Stock Outpacing Its Business Services Peers This Year?

Zacks Equity Research
Adobe Systems (ADBE) closed at $306.87 in the latest trading session, marking a -1.04% move from the prior day.

Investors focused on the Business Services space have likely heard of Mastercard (MA), but is the stock performing well in comparison to the rest of its sector peers? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.

Mastercard is one of 191 companies in the Business Services group. The Business Services group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. MA is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for MA's full-year earnings has moved 0.74% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, MA has moved about 40.90% on a year-to-date basis. Meanwhile, stocks in the Business Services group have gained about 28.11% on average. This means that Mastercard is outperforming the sector as a whole this year.

To break things down more, MA belongs to the Financial Transaction Services industry, a group that includes 23 individual companies and currently sits at #36 in the Zacks Industry Rank. This group has gained an average of 34.76% so far this year, so MA is performing better in this area.

Going forward, investors interested in Business Services stocks should continue to pay close attention to MA as it looks to continue its solid performance.


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