In the latest trading session, MasterCard (MA – Free Report) closed at $522.40, marking a -0.79% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.22%. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.16%.
The processor of debit and credit card payments’s stock has climbed by 1.04% in the past month, exceeding the Business Services sector’s loss of 4.49% and the S&P 500’s loss of 2.36%.
Analysts and investors alike will be keeping a close eye on the performance of MasterCard in its upcoming earnings disclosure. The company is forecasted to report an EPS of $3.68, showcasing a 15.72% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.4 billion, indicating a 12.97% increase compared to the same quarter of the previous year.
Investors should also pay attention to any latest changes in analyst estimates for MasterCard. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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% upward. MasterCard is currently a Zacks Rank #3 (Hold).
Looking at its valuation, MasterCard is holding a Forward P/E ratio of 32.35. This valuation marks a premium compared to its industry’s average Forward P/E of 14.13.
It is also worth noting that MA currently has a PEG ratio of 2.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The average PEG ratio for the Financial Transaction Services industry stood at 1.23 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 80, this industry ranks in the top 32% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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