Mastercard (MA) ended the latest trading session at $447.07, marking a +1.12% change from the previous day’s closing price. This move outpaced the S&P 500’s daily gain of 0.8%. Meanwhile, the Dow recorded a gain of 1.51%, while the tech-heavy Nasdaq lost 0.01%.
Heading into today, shares of the debit and credit card payment processing company had gained 0.23% over the past month, lagging the Business Services sector’s gain of 1.44% and the S&P 500’s gain of 4.14% in that time period.
Investors will be closely watching Mastercard’s performance in its upcoming earnings disclosure. In that report, analysts expect Mastercard to post earnings of $3.51 per share, which would represent year-over-year growth of 21.45%. Meanwhile, the latest consensus estimate is calling for revenue of $6.87 billion, representing year-over-year growth of 9.51%.
Looking at the full year, our Zacks Consensus Estimates are projecting earnings per share of $14.23 and revenue of $27.81 billion, which would represent changes of +16.07% and +10.81%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Mastercard. These latest adjustments often reflect shifting short-term business patterns. As such, positive estimate revisions represent analysts’ confidence in the company’s operating performance and earnings potential.
Our research shows that these estimate revisions are directly correlated with proximate team stock price movements, and to capitalize on this, we have created the Zacks Rank, a proprietary model which aggregates these estimate changes and provides a functioning rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an outside-audited track record of outperformance, with #1 ranked stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.03% lower. Mastercard currently carries a Zacks Rank #3 (Hold).
In terms of valuation, Mastercard is currently trading with a Forward P/E ratio of 31.07, which marks a premium compared to its industry’s Forward P/E ratio of 14.51.
It’s also important to note that MA currently has a PEG ratio of 1.73. The PEG ratio is similar to the commonly-used P/E ratio, but this metric also incorporates the company’s expected earnings growth rate. The average PEG ratio for the Financial Trading Services industry was 1.01 as of yesterday’s close.
The Financial Transaction Services industry is a part of the Business Services sector. This industry currently has a Zacks Industry Rank of #56, putting it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the vitality of our particular industry groups by calculating the average Zacks Rank of the individual stocks included in the groups, and our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
More information on all these metrics, and much more, can be found on Zacks.com.
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MasterCard Incorporated (MA) : Free Stock Analysis Report
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