Back to top

Image: Bigstock

MasterCard (MA) Increases Despite Market Slip: Here's What You Need to Know

Read MoreHide Full Article

MasterCard (MA - Free Report) closed the most recent trading day at $585.44, moving +0.22% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.53%. Meanwhile, the Dow experienced a drop of 0.26%, and the technology-dominated Nasdaq saw a decrease of 0.83%.

The processor of debit and credit card payments's shares have seen an increase of 3.14% over the last month, surpassing the Business Services sector's loss of 0.45% and falling behind the S&P 500's gain of 5.17%.

The investment community will be paying close attention to the earnings performance of MasterCard in its upcoming release. The company's upcoming EPS is projected at $4.05, signifying a 12.81% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.95 billion, up 14.16% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $15.98 per share and a revenue of $31.85 billion, demonstrating changes of +9.45% and +13.09%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for MasterCard. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 0.17% rise in the Zacks Consensus EPS estimate. As of now, MasterCard holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that MasterCard has a Forward P/E ratio of 36.55 right now. This signifies a premium in comparison to the average Forward P/E of 15.28 for its industry.

It's also important to note that MA currently trades at a PEG ratio of 2.55. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Financial Transaction Services industry currently had an average PEG ratio of 1.3 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 58, this industry ranks in the top 24% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Mastercard Incorporated (MA) - free report >>

Published in