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MasterCard (MA) Ascends While Market Falls: Some Facts to Note

MasterCard (MA) closed at $455.39 in the latest trading session, marking a +0.15% move from the prior day. This change outpaced the S&P 500's 0.88% loss on the day. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq lost 2.05%.

Shares of the processor of debit and credit card payments have depreciated by 6.95% over the course of the past month, underperforming the Business Services sector's loss of 6.12% and the S&P 500's loss of 2.57%.

Investors will be eagerly watching for the performance of MasterCard in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 1, 2024. In that report, analysts expect MasterCard to post earnings of $3.22 per share. This would mark year-over-year growth of 15%. Meanwhile, our latest consensus estimate is calling for revenue of $6.33 billion, up 10.05% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.35 per share and revenue of $28.09 billion, indicating changes of +17.05% and +11.94%, respectively, compared to the previous year.

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It's also important for investors to be aware of any recent modifications to analyst estimates 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.

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, 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 past month, the Zacks Consensus EPS estimate has moved 0.1% lower. MasterCard is currently a Zacks Rank #3 (Hold).

Digging into valuation, MasterCard currently has a Forward P/E ratio of 31.69. For comparison, its industry has an average Forward P/E of 14.19, which means MasterCard is trading at a premium to the group.

It's also important to note that MA currently trades at a PEG ratio of 1.73. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MA's industry had an average PEG ratio of 1.13 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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Mastercard Incorporated (MA) : Free Stock Analysis Report

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Zacks Investment Research