MasterCard (MA) Advances But Underperforms Market: Key Facts

MasterCard (MA) closed the most recent trading day at $535.46, moving +1.03% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 2.03% for the day. Elsewhere, the Dow gained 1.23%, while the tech-heavy Nasdaq added 2.74%.Coming into today, shares of the processor of debit and credit card payments had lost 3.47% in the past month. In that same time, the Business Services sector lost 3.26%, while the S&P 500 lost 5.07%.Market participants will be closely following the financial results of MasterCard in its upcoming release. The company plans to announce its earnings on May 1, 2025. It is anticipated that the company will report an EPS of $3.57, marking a 7.85% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $7.13 billion, showing a 12.25% escalation compared to the year-ago quarter.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.89 per share and a revenue of $31.59 billion, indicating changes of +8.84% and +12.16%, respectively, from the former year.It's also important for investors to be aware of any recent modifications to analyst estimates for MasterCard. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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% higher within the past month. Currently, MasterCard is carrying a Zacks Rank of #3 (Hold).Looking at valuation, MasterCard is presently trading at a Forward P/E ratio of 33.36. This valuation marks a premium compared to its industry's average Forward P/E of 14.36.We can additionally observe that MA currently boasts a PEG ratio of 2.32. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MA's industry had an average PEG ratio of 1.34 as of yesterday's close.The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 37% of all industries, numbering over 250.The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks