Back to top

Image: Bigstock

MasterCard (MA) Stock Moves -1.18%: What You Should Know

Read MoreHide Full Article

MasterCard (MA - Free Report) closed the most recent trading day at $286.77, moving -1.18% from the previous trading session. This change was narrower than the S&P 500's daily loss of 2.11%. Meanwhile, the Dow lost 1.54%, and the Nasdaq, a tech-heavy index, lost 0.3%.

Heading into today, shares of the processor of debit and credit card payments had lost 10.54% over the past month, outpacing the Business Services sector's loss of 11.24% and lagging the S&P 500's loss of 8.19% 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%. Meanwhile, our latest consensus estimate is calling for revenue of $5.66 billion, up 13.54% from the prior-year quarter.

MA's full-year Zacks Consensus Estimates are calling for earnings of $10.63 per share and revenue of $22.24 billion. These results would represent year-over-year changes of +26.55% and +17.79%, respectively.

Any recent changes to analyst estimates for MasterCard should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MasterCard is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, MasterCard is holding a Forward P/E ratio of 27.29. This valuation marks a premium compared to its industry's average Forward P/E of 15.57.

We can also see that MA currently has a PEG ratio of 1.35. 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 0.97 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 181, putting it in the bottom 29% 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.

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