MasterCard (MA) ended the recent trading session at $580.34, demonstrating a +2.07% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.62%. At the same time, the Dow added 0.99%, and the tech-heavy Nasdaq gained 0.65%.
The processor of debit and credit card payments's stock has climbed by 5.2% in the past month, exceeding the Business Services sector's gain of 1.64% and the S&P 500's gain of 0.59%.
The upcoming earnings release of MasterCard will be of great interest to investors. The company's earnings per share (EPS) are projected to be $4.21, reflecting a 10.21% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $8.77 billion, up 17.05% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $16.43 per share and revenue of $32.75 billion. These totals would mark changes of +12.53% and 0%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for MasterCard. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.02% downward. Right now, MasterCard possesses a Zacks Rank of #3 (Hold).
Digging into valuation, MasterCard currently has a Forward P/E ratio of 29.87. This valuation marks a premium compared to its industry average Forward P/E of 12.44.
It is also worth noting that MA currently has a PEG ratio of 1.93. 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. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 0.94.
The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 188, positioning it in the bottom 24% 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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