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MasterCard (MA) Gains But Lags Market: What You Should Know

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MasterCard (MA - Free Report) closed the most recent trading day at $237.88, moving +0.95% from the previous trading session. The stock lagged the S&P 500's daily gain of 6%. Meanwhile, the Dow gained 5.2%, and the Nasdaq, a tech-heavy index, added 6.23%.

Heading into today, shares of the processor of debit and credit card payments had lost 30.88% over the past month, lagging the Business Services sector's loss of 29.65% and the S&P 500's loss of 29.18% in that time.

Wall Street will be looking for positivity from MA as it approaches its next earnings report date. The company is expected to report EPS of $1.89, up 6.18% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.25 billion, up 9.36% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.86 per share and revenue of $19.11 billion, which would represent changes of +14.03% and +13.19%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for MA. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. The Zacks Consensus EPS estimate has moved 1.57% lower within the past month. MA currently has a Zacks Rank of #3 (Hold).

Investors should also note MA's current valuation metrics, including its Forward P/E ratio of 26.59. This valuation marks a premium compared to its industry's average Forward P/E of 15.96.

Meanwhile, MA's PEG ratio is currently 1.75. 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. MA's industry had an average PEG ratio of 1.11 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 175, putting it in the bottom 32% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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