Mastercard (MA) Stock Performance: A Mixed Bag Amid Strong Earnings
Company Overview: Based in Purchase, New York, Mastercard Incorporated (MA) stands as a prominent player in transaction processing and payment solutions. With a market capitalization of $481.6 billion, Mastercard offers services that encompass credit and debit card processing, electronic cash transactions, ATMs, and travelers’ checks.
Recent Stock Performance: Over the past year, shares of Mastercard have slightly lagged behind the overall market. The stock has increased by 34.6%, while the S&P 500 Index ($SPX) saw a nearly 36.8% gain. In 2024 alone, MA’s stock price rose by 23%, compared to the S&P 500’s 25.7% increase year-to-date.
When comparing it to the Financials Select Sector SPDR Fund (XLF), MA has also fallen short. The ETF has grown by 46.1% over the past year and 30.8% in 2024, surpassing Mastercard’s performance.
Latest Earnings Report: On October 31, Mastercard released its Q3 earnings, revealing positive results that nonetheless resulted in a 2.7% dip in stock price. The company reported net revenues of $7.4 billion and adjusted earnings per share (EPS) of $3.89, both exceeding market expectations.
Future Predictions: For the current fiscal year ending in December, analysts are predicting an EPS growth of 17.9%, projecting it to reach $14.45 on a diluted basis. Notably, Mastercard has consistently beaten earnings estimates over the last four quarters.
Analyst Ratings: Among the 38 analysts following MA stock, the consensus rating is a “Strong Buy,” comprised of 31 “Strong Buy” ratings, two “Moderate Buys,” and five “Holds.” This rating has slightly decreased from three months prior, during which 32 analysts recommended a “Strong Buy.”
Price Target Changes: On November 4, Morgan Stanley (MS) adjusted its price target for Mastercard to $544 from $540 and maintains an “Overweight” rating. While the firm sees continued strong spending and potential benefits from international travel, it reduced its FY2025 EPS estimate due to Singapore’s Pillar II global minimum tax rules.
The mean price target of $553.08 indicates a 5.4% premium to MA’s current stock price. The highest target on the Street stands at $605, suggesting a 15.3% upside potential.
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On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
