Back to top

Image: Bigstock

MasterCard (MA) Stock Moves -0.08%: What You Should Know

Read MoreHide Full Article

MasterCard (MA - Free Report) closed at $360.99 in the latest trading session, marking a -0.08% move from the prior day. This change was narrower than the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq gained 0.33%.

Coming into today, shares of the processor of debit and credit card payments had gained 17.96% in the past month. In that same time, the Business Services sector gained 2%, while the S&P 500 gained 3.11%.

Investors will be hoping for strength from MasterCard as it approaches its next earnings release. The company is expected to report EPS of $2.19, up 33.54% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.12 billion, up 24.37% from the prior-year quarter.

MA's full-year Zacks Consensus Estimates are calling for earnings of $8.27 per share and revenue of $18.79 billion. These results would represent year-over-year changes of +28.62% and +22.8%, respectively.

Any recent changes to analyst estimates for MasterCard should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.04% lower within the past month. MasterCard is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, MasterCard is holding a Forward P/E ratio of 43.69. This valuation marks a premium compared to its industry's average Forward P/E of 25.54.

Also, we should mention that MA has a PEG ratio of 2.09. 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. The Financial Transaction Services industry currently had an average PEG ratio of 1.2 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 33% 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.

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