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MasterCard (MA) Stock Sinks As Market Gains: What You Should Know

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MasterCard (MA - Free Report) closed the most recent trading day at $230.39, moving -0.34% from the previous trading session. This change lagged the S&P 500's 0.37% gain on the day. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 0.34%.

Prior to today's trading, shares of the processor of debit and credit card payments had gained 5.17% over the past month. This has outpaced the Business Services sector's gain of 3.7% and the S&P 500's gain of 1.83% in that time.

Investors will be hoping for strength from MA as it approaches its next earnings release. In that report, analysts expect MA to post earnings of $1.68 per share. This would mark year-over-year growth of 12%. Meanwhile, our latest consensus estimate is calling for revenue of $3.89 billion, up 8.68% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.55 per share and revenue of $16.78 billion. These totals would mark changes of +16.33% and +12.26%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for MA. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MA is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, MA is currently trading at a Forward P/E ratio of 30.62. This represents a premium compared to its industry's average Forward P/E of 19.91.

It is also worth noting that MA currently has a PEG ratio of 1.84. 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. The Financial Transaction Services industry currently had an average PEG ratio of 1.52 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 172, putting it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

To follow MA in the coming trading sessions, be sure to utilize Zacks.com.


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