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Why MasterCard (MA) Outpaced the Stock Market Today
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In the latest trading session, MasterCard (MA - Free Report) closed at $589.14, marking a +2.5% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.6%. Meanwhile, the Dow experienced a rise of 0.83%, and the technology-dominated Nasdaq saw an increase of 0.64%.
Coming into today, shares of the processor of debit and credit card payments had gained 1.66% in the past month. In that same time, the Business Services sector lost 2.9%, while the S&P 500 gained 1.34%.
Market participants will be closely following the financial results of MasterCard in its upcoming release. The company plans to announce its earnings on October 29, 2026. The company's earnings per share (EPS) are projected to be $5.13, reflecting a 17.12% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $9.62 billion, reflecting a 11.86% rise from the equivalent quarter last year.
MA's full-year Zacks Consensus Estimates are calling for earnings of $19.9 per share and revenue of $37.24 billion. These results would represent year-over-year changes of +16.99% and +13.57%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for MasterCard. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. MasterCard is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, MasterCard is presently trading at a Forward P/E ratio of 28.88. This signifies a premium in comparison to the average Forward P/E of 14.68 for its industry.
Also, we should mention that MA has a PEG ratio of 1.64. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 0.78.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 184, which puts it in the bottom 26% of all 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Image: Bigstock
Why MasterCard (MA) Outpaced the Stock Market Today
In the latest trading session, MasterCard (MA - Free Report) closed at $589.14, marking a +2.5% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.6%. Meanwhile, the Dow experienced a rise of 0.83%, and the technology-dominated Nasdaq saw an increase of 0.64%.
Coming into today, shares of the processor of debit and credit card payments had gained 1.66% in the past month. In that same time, the Business Services sector lost 2.9%, while the S&P 500 gained 1.34%.
Market participants will be closely following the financial results of MasterCard in its upcoming release. The company plans to announce its earnings on October 29, 2026. The company's earnings per share (EPS) are projected to be $5.13, reflecting a 17.12% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $9.62 billion, reflecting a 11.86% rise from the equivalent quarter last year.
MA's full-year Zacks Consensus Estimates are calling for earnings of $19.9 per share and revenue of $37.24 billion. These results would represent year-over-year changes of +16.99% and +13.57%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for MasterCard. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. MasterCard is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, MasterCard is presently trading at a Forward P/E ratio of 28.88. This signifies a premium in comparison to the average Forward P/E of 14.68 for its industry.
Also, we should mention that MA has a PEG ratio of 1.64. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 0.78.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 184, which puts it in the bottom 26% of all 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.