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MasterCard (MA) Stock Moves -0.38%: What You Should Know

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MasterCard (MA - Free Report) closed the latest trading day at $532.41, indicating a -0.38% change from the previous session's end. This move was narrower than the S&P 500's daily loss of 0.54%. Elsewhere, the Dow lost 0.53%, while the tech-heavy Nasdaq lost 0.66%.

The the stock of processor of debit and credit card payments has risen by 2.41% in the past month, lagging the Business Services sector's gain of 3.43% and overreaching the S&P 500's gain of 1.5%.

The upcoming earnings release of MasterCard will be of great interest to investors. The company's earnings per share (EPS) are projected to be $3.69, reflecting a 16.04% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $7.41 billion, reflecting a 13.12% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.47 per share and revenue of $28.08 billion. These totals would mark changes of +18.03% and +11.89%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.11% higher. At present, MasterCard boasts a Zacks Rank of #3 (Hold).

In the context of valuation, MasterCard is at present trading with a Forward P/E ratio of 36.93. This indicates a premium in contrast to its industry's Forward P/E of 16.27.

One should further note that MA currently holds a PEG ratio of 2.38. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 1.34.

The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 75, this industry ranks in the top 30% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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