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MasterCard (MA) Outpaces Stock Market Gains: What You Should Know

MasterCard (MA) closed the most recent trading day at $395.48, moving +0.03% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.02%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq gained 0.22%.

Prior to today's trading, shares of the processor of debit and credit card payments had lost 3.95% over the past month. This has lagged the Business Services sector's loss of 3.62% and the S&P 500's loss of 2.86% in that time.

Wall Street will be looking for positivity from MasterCard as it approaches its next earnings report date. In that report, analysts expect MasterCard to post earnings of $3.20 per share. This would mark year-over-year growth of 19.4%. Our most recent consensus estimate is calling for quarterly revenue of $6.52 billion, up 13.31% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.13 per share and revenue of $25.21 billion. These totals would mark changes of +13.9% and +13.35%, respectively, from last year.

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Investors might also notice recent changes to analyst estimates for MasterCard. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. MasterCard is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, MasterCard is currently trading at a Forward P/E ratio of 32.58. For comparison, its industry has an average Forward P/E of 13.32, which means MasterCard is trading at a premium to the group.

It is also worth noting that MA currently has a PEG ratio of 1.78. 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. MA's industry had an average PEG ratio of 1.19 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 108, putting it in the top 43% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Mastercard Incorporated (MA) : Free Stock Analysis Report

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Zacks Investment Research