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MasterCard (MA) Advances While Market Declines: Some Information for Investors

MasterCard (MA) closed the most recent trading day at $456.96, moving +0.46% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.31%. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq lost 1.09%.

Prior to today's trading, shares of the processor of debit and credit card payments had gained 0.81% over the past month. This has outpaced the Business Services sector's gain of 0.6% and lagged the S&P 500's gain of 2.73% in that time.

The investment community will be closely monitoring the performance of MasterCard in its forthcoming earnings report. It is anticipated that the company will report an EPS of $3.50, marking a 21.11% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.85 billion, indicating a 9.28% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.22 per share and a revenue of $27.8 billion, signifying shifts of +15.99% and +10.75%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for MasterCard. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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, there's been no change in the Zacks Consensus EPS estimate. Currently, MasterCard is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that MasterCard has a Forward P/E ratio of 32 right now. This indicates a premium in contrast to its industry's Forward P/E of 15.15.

Also, we should mention that MA has a PEG ratio of 1.78. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Financial Transaction Services stocks are, on average, holding a PEG ratio of 0.99 based on yesterday's closing prices.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% 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.

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

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Mastercard Incorporated (MA) : Free Stock Analysis Report

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Zacks Investment Research