MasterCard (MA) closed the most recent trading day at $586.05, moving -2.1% from the previous trading session. This change lagged the S&P 500's 0.48% gain on the day. On the other hand, the Dow registered a gain of 0.27%, and the technology-centric Nasdaq increased by 0.94%.
Shares of the processor of debit and credit card payments witnessed a gain of 1% over the previous month, trailing the performance of the Business Services sector with its gain of 2.59%, and the S&P 500's gain of 2.46%.
The investment community will be paying close attention to the earnings performance of MasterCard in its upcoming release. The company is expected to report EPS of $4.3, up 10.54% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.48 billion, up 15.08% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $16.32 per share and revenue of $32.42 billion. These totals would mark changes of +11.78% and +15.1%, respectively, from last year.
Any recent changes to analyst estimates for MasterCard should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.05% increase. MasterCard is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, MasterCard is currently being traded at a Forward P/E ratio of 36.69. This indicates a premium in contrast to its industry's Forward P/E of 16.06.
Meanwhile, MA's PEG ratio is currently 2.45. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.24 based on yesterday's closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 50, putting it in the top 21% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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