In the latest trading session, MasterCard (MA) closed at $345.84, marking a -1.76% move from the previous day. This change lagged the S&P 500’s 0.63% loss on the day. Meanwhile, the Dow lost 0.55%, and the Nasdaq, a tech-heavy index, lost 0.1%.
Coming into today, shares of the processor of debit and credit card payments had gained 3.97% in the past month. In that same time, the Business Services sector lost 5.82%, while the S&P 500 gained 5.91%.
Investors will be hoping for strength from MA as it approaches its next earnings release, which is expected to be October 28, 2020. On that day, MA is projected to report earnings of $1.64 per share, which would represent a year-over-year decline of 23.72%. Meanwhile, our latest consensus estimate is calling for revenue of $3.93 billion, down 11.94% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.62 per share and revenue of $15.57 billion. These totals would mark changes of -14.8% and -7.79%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for MA. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. MA is currently a Zacks Rank #3 (Hold).
Looking at its valuation, MA is holding a Forward P/E ratio of 53.18. This represents a premium compared to its industry’s average Forward P/E of 27.31.
Meanwhile, MA’s PEG ratio is currently 2.94. 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.57 based on yesterday’s closing prices.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MA in the coming trading sessions, be sure to utilize Zacks.com.