MasterCard (MA) closed at $307.60 in the latest trading session, marking a -1.4% move from the prior day. This change lagged the S&P 500's daily gain of 0.17%. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, lost 0.81%.
Coming into today, shares of the processor of debit and credit card payments had gained 2.47% in the past month. In that same time, the Business Services sector gained 5.03%, while the S&P 500 gained 5.15%.
MA will be looking to display strength as it nears its next earnings release, which is expected to be July 30, 2020. In that report, analysts expect MA to post earnings of $1.14 per share. This would mark a year-over-year decline of 39.68%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.23 billion, down 21.58% from the year-ago period.
MA's full-year Zacks Consensus Estimates are calling for earnings of $6.46 per share and revenue of $15.53 billion. These results would represent year-over-year changes of -16.86% and -8.04%, respectively.
It is also important to note the recent changes to analyst estimates for MA. 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. 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.
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. Within the past 30 days, our consensus EPS projection has moved 1.37% higher. MA is currently a Zacks Rank #3 (Hold).
Looking at its valuation, MA is holding a Forward P/E ratio of 48.3. This valuation marks a premium compared to its industry's average Forward P/E of 30.91.
Also, we should mention that MA has a PEG ratio of 3.76. 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 1.92 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 36, putting it in the top 15% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Mastercard Incorporated (MA) : Free Stock Analysis Report
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