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The most recent trading session ended with MasterCard (MA) standing at $485.52, reflecting a -0.87% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a loss of 0.23% for the day. Elsewhere, the Dow saw a downswing of 0.91%, while the tech-heavy Nasdaq appreciated by 0.1%.
Heading into today, shares of the processor of debit and credit card payments had lost 10.43% over the past month, lagging the Business Services sector's loss of 10.29% and outpacing the S&P 500's loss of 12.13% in that time.
Analysts and investors alike will be keeping a close eye on the performance of MasterCard in its upcoming earnings disclosure. On that day, MasterCard is projected to report earnings of $3.57 per share, which would represent year-over-year growth of 7.85%. Alongside, our most recent consensus estimate is anticipating revenue of $7.12 billion, indicating a 12.18% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.87 per share and a revenue of $31.56 billion, representing changes of +8.7% and +12.06%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for MasterCard. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.2% downward. MasterCard presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that MasterCard has a Forward P/E ratio of 30.86 right now. This signifies a premium in comparison to the average Forward P/E of 12.99 for its industry.
Investors should also note that MA has a PEG ratio of 2.14 right now. 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 1.28 as of yesterday's close.