Back to top

Image: Bigstock

MasterCard (MA) Stock Moves -1.6%: What You Should Know

Read MoreHide Full Article

MasterCard (MA - Free Report) closed the most recent trading day at $293.58, moving -1.6% from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.72%. Meanwhile, the Dow lost 1.62%, and the Nasdaq, a tech-heavy index, added 0.01%.

Heading into today, shares of the processor of debit and credit card payments had lost 13.44% over the past month, lagging the Business Services sector's loss of 12.47% and the S&P 500's loss of 9.09% in that time.

MasterCard will be looking to display strength as it nears its next earnings release. In that report, analysts expect MasterCard to post earnings of $2.58 per share. This would mark year-over-year growth of 8.86%. Our most recent consensus estimate is calling for quarterly revenue of $5.68 billion, up 13.92% from the year-ago period.

MA's full-year Zacks Consensus Estimates are calling for earnings of $10.64 per share and revenue of $22.28 billion. These results would represent year-over-year changes of +26.67% and +17.96%, respectively.

Investors should also note any recent changes to analyst estimates for MasterCard. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. MasterCard is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that MasterCard has a Forward P/E ratio of 28.05 right now. This represents a premium compared to its industry's average Forward P/E of 15.32.

Meanwhile, MA's PEG ratio is currently 1.39. 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 1 based on yesterday's closing prices.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 32% of all 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.

To follow MA in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Mastercard Incorporated (MA) - free report >>

Published in