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MasterCard (MA) closed the latest trading day at $548.51, indicating a +0.07% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.38%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.87%.
Shares of the processor of debit and credit card payments witnessed a loss of 4.66% over the previous month, trailing the performance of the Business Services sector with its loss of 4.52% and outperforming the S&P 500's loss of 5.59%.
The upcoming earnings release of MasterCard will be of great interest to investors. It is anticipated that the company will report an EPS of $3.57, marking a 7.85% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.12 billion, up 12.18% from the year-ago period.
MA's full-year Zacks Consensus Estimates are calling for earnings of $15.88 per share and revenue of $31.56 billion. These results would represent year-over-year changes of +8.77% and +12.06%, respectively.
Investors should also note any recent changes to analyst estimates for MasterCard. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% lower. Currently, MasterCard is carrying a Zacks Rank of #4 (Sell).
From a valuation perspective, MasterCard is currently exchanging hands at a Forward P/E ratio of 34.51. This signifies a premium in comparison to the average Forward P/E of 14.72 for its industry.
We can also see that MA currently has a PEG ratio of 2.4. 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 1.43 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 80, which puts it in the top 33% of all 250+ industries.