In the latest trading session, MasterCard (MA) closed at $512.46, marking a +0.53% move from the previous day. This change lagged the S&P 500's 0.79% gain on the day. Elsewhere, the Dow saw an upswing of 0.78%, while the tech-heavy Nasdaq appreciated by 0.64%.

The processor of debit and credit card payments's stock has dropped by 3.39% in the past month, falling short of the Business Services sector's loss of 2.73% and outpacing the S&P 500's loss of 3.56%.

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. The company's upcoming EPS is projected at $3.57, signifying a 7.85% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $7.12 billion, indicating a 12.18% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.87 per share and a revenue of $31.56 billion, indicating changes of +8.7% and +12.06%, 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. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.05% downward. At present, MasterCard boasts a Zacks Rank of #4 (Sell).

In terms of valuation, MasterCard is presently being traded at a Forward P/E ratio of 32.11. For comparison, its industry has an average Forward P/E of 14.5, which means MasterCard is trading at a premium to the group.

It's also important to note that MA currently trades at a PEG ratio of 2.23. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial Transaction Services was holding an average PEG ratio of 1.28 at yesterday's closing price.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 90, putting it in the top 37% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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Mastercard Incorporated (MA) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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