MasterCard (MA) ended the recent trading session at $532.97, demonstrating a -1.07% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.22% for the day. On the other hand, the Dow registered a gain of 0.08%, and the technology-centric Nasdaq decreased by 0.51%.
Heading into today, shares of the processor of debit and credit card payments had lost 5.51% over the past month, lagging the Business Services sector's loss of 4.75% and the S&P 500's gain of 0.45%.
Investors will be eagerly watching for the performance of MasterCard in its upcoming earnings disclosure. The company is forecasted to report an EPS of $4.05, showcasing a 12.81% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.95 billion, indicating a 14.21% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.98 per share and revenue of $31.85 billion. These totals would mark changes of +9.45% and +13.08%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for MasterCard. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.04% upward. MasterCard is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, MasterCard is holding a Forward P/E ratio of 33.72. This signifies a premium in comparison to the average Forward P/E of 15.11 for its industry.
Also, we should mention that MA has a PEG ratio of 2.35. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. MA's industry had an average PEG ratio of 1.25 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 57, placing it within the top 24% of over 250 industries.
The Zacks Industry Rank is ordered 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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