MasterCard (MA) ended the recent trading session at $507.70, demonstrating a +1.95% change from the preceding day’s closing price. The stock outpaced the S&P 500’s daily gain of 1.01%. Meanwhile, the Dow gained 0.83%, and the Nasdaq, a tech-heavy index, added 1.22%.
Heading into today, shares of the processor of debit and credit card payments had lost 3.93% over the past month, lagging the Business Services sector’s loss of 1.61% and the S&P 500’s loss of 2.86%.
Analysts and investors alike will be keeping a close eye on the performance of MasterCard in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $4.37, marking a 17.16% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $8.29 billion, reflecting a 14.41% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $19.39 per share and revenue of $36.96 billion. These totals would mark changes of +13.99% and +12.72%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for MasterCard. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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, 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. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. Currently, MasterCard is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, MasterCard is presently trading at a Forward P/E ratio of 25.69. This valuation marks a premium compared to its industry average Forward P/E of 10.79.
Meanwhile, MA’s PEG ratio is currently 1.61. 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. MA’s industry had an average PEG ratio of 0.93 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 151, placing it within the bottom 39% of over 250 industries.
