Mastercard Incorporated MA recently released a report showing U.S. retail sales, excluding automotive, witnessing a 3.8% year-over-year jump this holiday season. Data provided by Mastercard SpendingPulse for the period between Nov. 1 and Dec. 24, 2024, showed that steep discounts attracted consumers this holiday season as they searched for value. A healthy labor market and household wealth gains supported the consumer spending metric.
The increase in U.S. retail sales was higher than Mastercard’s expectation of 3.2% and 3.1% growth witnessed last year. Online shopping fueled much of the gains in consumer spending. E-commerce sales rose 6.7% year over year, while in-store sales grew 2.9% year over year during the holiday season. Apparel e-commerce sales grew 6.7% year over year. Restaurant sales witnessed a 6.3% year-over-year jump due to demand for experiences such as dining out. Electronics, apparel, and jewelry sales grew 3.7%, 3.6%, and 4% year over year, respectively.
Certain cities stood out in their digital shopping adoption. Tampa (10.6%) and Phoenix (10%) recorded double-digit e-commerce growth, followed by Minneapolis (8.9%), Dallas (8.4%), Charlotte (7.9%), and others, all surpassing the national average. The results highlight evolving consumer preferences and the growing importance of digital channels in shaping the holiday retail landscape.
Payment innovations are the backbone of a company like Mastercard. Moreover, given customers' reliance on online shopping during holiday seasons or otherwise, innovating in this area is inevitable for continuous growth. As inflation continues to cool, renewed moderation in prices of goods should fuel more sales in the future.
MA’s Price Performance
Shares of Mastercard have gained 25.7% in the past year compared with the industry’s 25% growth.
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MA’s Zacks Rank & Key Picks
Mastercard currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Business Services space are Coinbase Global, Inc. COIN, Payoneer Global Inc. PAYO and RB Global, Inc. RBA. Coinbase currently sports a Zacks Rank #1 (Strong Buy) while Payoneer Global and RB Global carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of Coinbase Global outpaced estimates in three of the last four quarters, met once, the average surprise being 341.4%. The Zacks Consensus Estimate for COIN’s 2024 earnings indicates an improvement of more than 14-fold from the year-ago figure. The same for revenues implies growth of 83.9% from the prior-year tally. The consensus mark for COIN’s 2024 earnings has moved 3.3% north in the past 60 days.
Payoneer Global’s earnings outpaced estimates in three of the trailing four quarters and matched the mark once, the average surprise being 71.25%. The Zacks Consensus Estimate for PAYO’s 2024 earnings indicates an improvement of 45.8% from the year-ago figure. The same for revenues implies growth of 15.2% from the year-ago actual. The consensus mark for PAYO’s 2024 earnings has moved 40% north in the past 60 days.
The bottom line of RB Global outpaced estimates in each of the last four quarters, the average surprise being 16.31%. The Zacks Consensus Estimate for RBA’s 2024 earnings indicates an improvement of 11% from the year-ago figure. The same for revenues implies growth of 13.8% from the prior-year tally. The consensus mark for RBA’s 2024 earnings has moved 3.8% north in the past 60 days.
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Mastercard Incorporated (MA) : Free Stock Analysis Report
RB Global, Inc. (RBA) : Free Stock Analysis Report
Coinbase Global, Inc. (COIN) : Free Stock Analysis Report
Payoneer Global Inc. (PAYO) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
