MasterCard (MA – Free Report) closed the most recent trading day at $519.83, moving -0.92% from the previous trading session. This move lagged the S&P 500’s daily loss of 0.91%. Elsewhere, the Dow saw a downswing of 1.5%, while the tech-heavy Nasdaq depreciated by 1.96%.
Coming into today, shares of the processor of debit and credit card payments had lost 7.08% in the past month. In that same time, the Business Services sector lost 9.97%, while the S&P 500 lost 7.38%.
Investors will be eagerly watching for the performance of MasterCard in its upcoming earnings disclosure. 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. Alongside, our most recent consensus estimate is anticipating revenue of $7.12 billion, indicating a 12.18% upward movement from the same quarter last year.
MA’s full-year Zacks Consensus Estimates are calling for earnings of $15.85 per share and revenue of $31.56 billion. These results would represent year-over-year changes of +8.56% and +12.06%, respectively.
Investors might also notice recent changes to analyst estimates for MasterCard. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. The Zacks Consensus EPS estimate has moved 0.65% lower within the past month. MasterCard is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, MasterCard is holding a Forward P/E ratio of 33.1. This denotes a premium relative to the industry’s average Forward P/E of 14.8.
Meanwhile, MA’s PEG ratio is currently 2.26. 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 the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 1.37.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 129, placing it within the bottom 49% of over 250 industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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