MasterCard (MA – Free Report) ended the recent trading session at $536.09, demonstrating a +1.11% swing from the preceding day’s closing price. The stock’s performance was ahead of the S&P 500’s daily gain of 1.08%. On the other hand, the Dow registered a gain of 0.92%, and the technology-centric Nasdaq increased by 1.41%.
The processor of debit and credit card payments’s shares have seen a decrease of 6.76% over the last month, surpassing the Business Services sector’s loss of 12.62% and the S&P 500’s loss of 8.26%.
The investment community will be paying close attention to the earnings performance of MasterCard in its upcoming release. The company’s upcoming EPS is projected at $3.57, signifying a 7.85% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.12 billion, indicating a 12.18% increase compared to the same quarter of the previous year.
MA’s full-year Zacks Consensus Estimates are calling for earnings of $15.88 per share and revenue of $31.56 billion. These results would represent year-over-year changes of +8.77% and +12.06%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for MasterCard. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.15% decrease. As of now, MasterCard holds a Zacks Rank of #3 (Hold).
Digging into valuation, MasterCard currently has a Forward P/E ratio of 33.38. Its industry sports an average Forward P/E of 15.27, so one might conclude that MasterCard is trading at a premium comparatively.
It’s also important to note that MA currently trades at a PEG ratio of 2.32. 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 1.4 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 135, finds itself in the bottom 47% echelons of all 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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