MasterCard (MA) closed at $501.33 in the latest trading session, marking a +2.18% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.57%. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq lost 1.15%.
The stock of processor of debit and credit card payments has fallen by 3% in the past month, lagging the Business Services sector's gain of 0.13% and the S&P 500's gain of 2.14%.
Investors will be eagerly watching for the performance of MasterCard in its upcoming earnings disclosure. The company's upcoming EPS is projected at $4.76, signifying a 14.70% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.06 billion, indicating a 11.41% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $19.6 per share and a revenue of $36.99 billion, demonstrating changes of +15.23% and +12.8%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for MasterCard. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0% upward. MasterCard is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note MasterCard's current valuation metrics, including its Forward P/E ratio of 25.03. This indicates a premium in contrast to its industry's Forward P/E of 10.55.
One should further note that MA currently holds a PEG ratio of 1.53. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Financial Transaction Services industry currently had an average PEG ratio of 0.77 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 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Mastercard Incorporated (MA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).