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The most recent trading session ended with MasterCard (MA) standing at $509.02, reflecting a +0.81% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.12%. Elsewhere, the Dow saw an upswing of 0.52%, while the tech-heavy Nasdaq depreciated by 0.23%.
The processor of debit and credit card payments's shares have seen a decrease of 4.79% over the last month, surpassing the Business Services sector's loss of 6.13% and falling behind the S&P 500's loss of 3.45%.
The upcoming earnings release of MasterCard will be of great interest to investors. The company's earnings report is expected on January 30, 2025. The company is predicted to post an EPS of $3.68, indicating a 15.72% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.39 billion, indicating a 12.83% increase compared to the same quarter of the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for MasterCard. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.01% decrease. MasterCard currently has a Zacks Rank of #3 (Hold).
Looking at valuation, MasterCard is presently trading at a Forward P/E ratio of 31.04. This valuation marks a premium compared to its industry's average Forward P/E of 13.76.
We can additionally observe that MA currently boasts a PEG ratio of 2.01. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Financial Transaction Services industry stood at 1.14 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 92, this industry ranks in the top 37% of all industries, numbering over 250.