The most recent trading session ended with MasterCard (MA) standing at $509.32, reflecting a -1.55% shift from the previouse trading day's closing. This change was narrower than the S&P 500's 2.36% loss on the day. At the same time, the Dow lost 2.48%, and the tech-heavy Nasdaq lost 2.55%.
Shares of the processor of debit and credit card payments have depreciated by 3.43% over the course of the past month, underperforming the Business Services sector's loss of 1.14% and outperforming the S&P 500's loss of 5.6%.
The investment community will be paying close attention to the earnings performance of MasterCard in its upcoming release. The company is slated to reveal its earnings on May 1, 2025. The company is forecasted to report an EPS of $3.57, showcasing a 7.85% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $7.13 billion, showing a 12.25% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $15.89 per share and a revenue of $31.58 billion, signifying shifts of +8.84% and +12.11%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for MasterCard. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 moved 0.04% higher. Currently, MasterCard is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, MasterCard is holding a Forward P/E ratio of 32.56. This valuation marks a premium compared to its industry's average Forward P/E of 14.61.
Also, we should mention that MA has a PEG ratio of 2.27. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 1.32.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 88, this industry ranks in the top 36% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Mastercard Incorporated (MA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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