MA Quick Quote MA - Free Report) closed the most recent trading day at $330.07, moving +0.44% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.66%. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq gained 0.08%.
Prior to today's trading, shares of the processor of debit and credit card payments had lost 7.01% over the past month. This has was narrower than the Business Services sector's loss of 10.23% and lagged the S&P 500's loss of 3.79% in that time.
Investors will be hoping for strength from MasterCard as it approaches its next earnings release. On that day, MasterCard is projected to report earnings of $2.60 per share, which would represent year-over-year growth of 9.7%. Meanwhile, our latest consensus estimate is calling for revenue of $5.68 billion, up 13.92% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.66 per share and revenue of $22.28 billion. These totals would mark changes of +26.9% and +17.96%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for MasterCard. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating 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).
Looking at its valuation, MasterCard is holding a Forward P/E ratio of 30.84. Its industry sports an average Forward P/E of 16.28, so we one might conclude that MasterCard is trading at a premium comparatively.
Also, we should mention that MA has a PEG ratio of 1.52. 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.04 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 186, putting it in the bottom 27% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.