January 8, 2025
The most recent trading session ended with MasterCard (MA) standing at $516.40, reflecting a +0.98% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.16%. On the other hand, the Dow registered a gain of 0.25%, and the technology-centric Nasdaq decreased by 0.06%.
Prior to today's trading, shares of the processor of debit and credit card payments had lost 3.33% over the past month. This has was narrower than the Business Services sector's loss of 6.27% and lagged the S&P 500's loss of 2.8% 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 $3.68 per share, which would represent year-over-year growth of 15.72%. Alongside, our most recent consensus estimate is anticipating revenue of $7.4 billion, indicating a 12.97% upward movement from the same quarter last year.
Investors should also pay attention to any latest changes in analyst estimates for MasterCard. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.02% higher. MasterCard is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, MasterCard is presently trading at a Forward P/E ratio of 31.42. This valuation marks a premium compared to its industry's average Forward P/E of 13.97.
Also, we should mention that MA has a PEG ratio of 2.03. 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. The Financial Transaction Services industry currently had an average PEG ratio of 1.21 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 31% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Mastercard Incorporated (MA) : Free Stock Analysis Report
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