MasterCard (MA – Free Report) closed the most recent trading day at $346.33, moving +0.99% from the previous trading session. This move outpaced the S&P 500’s daily gain of 0.23%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq gained 0.43%.
Heading into today, shares of the processor of debit and credit card payments had gained 2.78% over the past month, outpacing the Business Services sector’s gain of 1.25% and lagging the S&P 500’s gain of 3.86% in that time.
Investors will be hoping for strength from MA as it approaches its next earnings release. In that report, analysts expect MA to post earnings of $1.53 per share. This would mark a year-over-year decline of 21.94%. Meanwhile, our latest consensus estimate is calling for revenue of $4.02 billion, down 8.96% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for MA. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.24% lower within the past month. MA is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that MA has a Forward P/E ratio of 42.3 right now. For comparison, its industry has an average Forward P/E of 26.17, which means MA is trading at a premium to the group.
It is also worth noting that MA currently has a PEG ratio of 2.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Financial Transaction Services industry currently had an average PEG ratio of 2.25 as of yesterday’s close.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.