Back to top

Image: Bigstock

MasterCard (MA) Stock Moves -0.02%: What You Should Know

Read MoreHide Full Article

MasterCard (MA - Free Report) closed the most recent trading day at $276.34, moving -0.02% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.07%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq lost 0.22%.

Heading into today, shares of the processor of debit and credit card payments had gained 1.66% over the past month, outpacing the Business Services sector's gain of 1.22% and lagging the S&P 500's gain of 4.58% 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 +17.2% and +12.45%, respectively, from the prior year.

Any recent changes to analyst estimates for MA should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MA currently has a Zacks Rank of #3 (Hold).

Digging into valuation, MA currently has a Forward P/E ratio of 36.34. This represents a premium compared to its industry's average Forward P/E of 24.65.

We can also see that MA currently has a PEG ratio of 2.18. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Financial Transaction Services stocks are, on average, holding a PEG ratio of 2.18 based on yesterday's closing prices.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


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


Mastercard Incorporated (MA) - free report >>

Published in