MasterCard (MA) closed at $194.53 in the latest trading session, marking a -1.1% move from the prior day. This move was narrower than the S&P 500's daily loss of 2.06%. At the same time, the Dow lost 2.13%, and the tech-heavy Nasdaq lost 1.25%.
Coming into today, shares of the processor of debit and credit card payments had lost 8.1% in the past month. In that same time, the Business Services sector lost 7.22%, while the S&P 500 lost 3.01%.
Investors will be hoping for strength from MA as it approaches its next earnings release, which is expected to be October 30, 2018. The company is expected to report EPS of $1.68, up 25.37% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.86 billion, up 13.71% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.41 per share and revenue of $14.94 billion, which would represent changes of +39.96% and +19.51%, respectively, from the prior year.
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.
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, 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. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. MA is currently a Zacks Rank #3 (Hold).
Investors should also note MA's current valuation metrics, including its Forward P/E ratio of 30.71. This valuation marks a premium compared to its industry's average Forward P/E of 20.87.
Meanwhile, MA's PEG ratio is currently 1.62. 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 1.48 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 144, putting it in the bottom 44% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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