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Is Most-Watched Stock Mastercard Incorporated (MA) Worth Betting on Now?
MAMastercard(MA) ZACKS·2025-04-11 14:05

Core Viewpoint - MasterCard has been experiencing a decline in stock performance, with recent estimates indicating potential challenges ahead, as reflected in its Zacks Rank of 4 (Sell) [7][16]. Earnings Estimates - MasterCard is projected to report earnings of 3.57pershareforthecurrentquarter,reflectingayearoveryearincreaseof+7.93.57 per share for the current quarter, reflecting a year-over-year increase of +7.9% [5]. - The consensus earnings estimate for the current fiscal year stands at 15.87, indicating a year-over-year change of +8.7% [5]. - For the next fiscal year, the consensus estimate is 18.63,representinga+17.418.63, representing a +17.4% change from the previous year [6]. Revenue Growth Forecast - The consensus sales estimate for the current quarter is 7.12 billion, which indicates a year-over-year growth of +12.2% [9]. - For the current fiscal year, the revenue estimate is 31.56billion,reflectinga+12.131.56 billion, reflecting a +12.1% change, while the next fiscal year's estimate is 35.5 billion, indicating a +12.5% change [9]. Last Reported Results - In the last reported quarter, MasterCard achieved revenues of 7.49billion,ayearoveryearincreaseof+14.47.49 billion, a year-over-year increase of +14.4% [10]. - The EPS for the same period was 3.82, compared to $3.18 a year ago, with a revenue surprise of +1.44% and an EPS surprise of +3.8% [10][11]. Valuation - MasterCard is graded F on the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [15]. - The assessment of valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) suggests that the stock may be overvalued relative to its historical values and peers [13][15].