Here's Why MasterCard (MA) Gained But Lagged the Market Today

business people have a meeting about company statistics

The latest trading session saw MasterCard (MA) ending at $528.03, denoting a +0.91% adjustment from its last day's close. The stock lagged the S&P 500's daily gain of 1.09%. At the same time, the Dow added 1.18%, and the tech-heavy Nasdaq gained 1.03%.

Shares of the processor of debit and credit card payments have appreciated by 1.59% over the course of the past month, outperforming the Business Services sector's loss of 1.51% and the S&P 500's loss of 0.71%.

Market participants will be closely following the financial results of MasterCard in its upcoming release. The company's earnings per share (EPS) are projected to be $3.68, reflecting a 15.72% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.4 billion, up 13.06% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.47 per share and a revenue of $28.08 billion, indicating changes of +18.03% and +11.88%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for MasterCard. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. MasterCard is currently a Zacks Rank #3 (Hold).

With respect to valuation, MasterCard is currently being traded at a Forward P/E ratio of 36.17. This expresses a premium compared to the average Forward P/E of 15.32 of its industry.

Investors should also note that MA has a PEG ratio of 2.34 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 1.25.

The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 75, this industry ranks in the top 30% of all industries, numbering over 250.

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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Mastercard Incorporated (MA) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

OK