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MasterCard (MA) Rises As Market Takes a Dip: Key Facts

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The latest trading session saw MasterCard (MA - Free Report) ending at $524.77, denoting a +0.7% adjustment from its last day's close. The stock's change was more than the S&P 500's daily loss of 0.19%. Elsewhere, the Dow lost 0.55%, while the tech-heavy Nasdaq lost 0.18%.

Prior to today's trading, shares of the processor of debit and credit card payments had 0% over the past month. This has lagged the Business Services sector's gain of 12.42% and the S&P 500's gain of 6.66% in that time.

Market participants will be closely following the financial results of MasterCard in its upcoming release. In that report, analysts expect MasterCard to post earnings of $3.69 per share. This would mark year-over-year growth of 16.04%. In the meantime, our current consensus estimate forecasts the revenue to be $7.41 billion, indicating a 13.12% growth compared to the corresponding quarter of the prior year.

MA's full-year Zacks Consensus Estimates are calling for earnings of $14.47 per share and revenue of $28.08 billion. These results would represent year-over-year changes of +18.03% and +11.9%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for MasterCard. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.11% increase. Right now, MasterCard possesses a Zacks Rank of #3 (Hold).

In the context of valuation, MasterCard is at present trading with a Forward P/E ratio of 36.01. This valuation marks a premium compared to its industry's average Forward P/E of 16.16.

Meanwhile, MA's PEG ratio is currently 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 Financial Transaction Services industry currently had an average PEG ratio of 1.35 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 79, placing it within the top 32% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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