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MasterCard (MA) Stock Moves -0.89%: What You Should Know

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MasterCard (MA - Free Report) closed the most recent trading day at $384.41, moving -0.89% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 1.26%. Elsewhere, the Dow saw a downswing of 0.86%, while the tech-heavy Nasdaq depreciated by 1.54%.

Coming into today, shares of the processor of debit and credit card payments had lost 3.84% in the past month. In that same time, the Business Services sector lost 4.74%, while the S&P 500 lost 3.67%.

The upcoming earnings release of MasterCard will be of great interest to investors. The company's earnings report is expected on October 26, 2023. In that report, analysts expect MasterCard to post earnings of $3.21 per share. This would mark year-over-year growth of 19.78%. Meanwhile, the latest consensus estimate predicts the revenue to be $6.53 billion, indicating a 13.41% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.14 per share and a revenue of $25.21 billion, indicating changes of +13.99% and +13.37%, respectively, from the former year.

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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.08% rise in the Zacks Consensus EPS estimate. MasterCard presently features a Zacks Rank of #3 (Hold).

In terms of valuation, MasterCard is presently being traded at a Forward P/E ratio of 31.95. This valuation marks a premium compared to its industry's average Forward P/E of 12.97.

It is also worth noting that MA currently has a PEG ratio of 1.75. 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 1.13 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 143, putting it in the bottom 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.


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