MasterCard (MA - Free Report) closed at $291.38 in the latest trading session, marking a -0.24% move from the prior day. This change lagged the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, lost 0.17%.
Prior to today's trading, shares of the processor of debit and credit card payments had gained 5.05% over the past month. This has lagged the Business Services sector's gain of 7.57% and outpaced the S&P 500's gain of 4.92% in that time.
MA will be looking to display strength as it nears its next earnings release. In that report, analysts expect MA to post earnings of $2.01 per share. This would mark year-over-year growth of 12.92%. Our most recent consensus estimate is calling for quarterly revenue of $4.42 billion, up 13.5% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.61 per share and revenue of $16.81 billion, which would represent changes of +17.26% and +12.45%, respectively, from the prior year.
Any recent changes to analyst estimates for MA should also be noted by investors. Recent revisions tend to reflect the latest 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. 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.
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).
Looking at its valuation, MA is holding a Forward P/E ratio of 38.4. For comparison, its industry has an average Forward P/E of 25.57, which means MA is trading at a premium to the group.
It is also worth noting that MA currently has a PEG ratio of 2.31. 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. MA's industry had an average PEG ratio of 2.31 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.