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MasterCard (MA) Ascends But Remains Behind Market: Some Facts to Note

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MasterCard (MA - Free Report) closed at $414.36 in the latest trading session, marking a +0.13% move from the prior day. This move lagged the S&P 500's daily gain of 0.59%. On the other hand, the Dow registered a gain of 0.82%, and the technology-centric Nasdaq increased by 0.55%.

Heading into today, shares of the processor of debit and credit card payments had gained 8.14% over the past month, lagging the Business Services sector's gain of 11.92% and the S&P 500's gain of 9.16% in that time.

Market participants will be closely following the financial results of MasterCard in its upcoming release. On that day, MasterCard is projected to report earnings of $3.07 per share, which would represent year-over-year growth of 15.85%. Alongside, our most recent consensus estimate is anticipating revenue of $6.45 billion, indicating a 10.89% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.16 per share and revenue of $25 billion, indicating changes of +14.18% and +12.43%, respectively, compared to the previous 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.16% higher. MasterCard is holding a Zacks Rank of #3 (Hold) right now.

Looking at valuation, MasterCard is presently trading at a Forward P/E ratio of 34.02. This expresses a premium compared to the average Forward P/E of 13.43 of its industry.

Meanwhile, MA's PEG ratio is currently 1.87. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. MA's industry had an average PEG ratio of 1.14 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 164, placing it within the bottom 35% of over 250 industries.

The Zacks Industry Rank is ordered 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

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