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MasterCard (MA) Gains As Market Dips: What You Should Know

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MasterCard (MA - Free Report) closed the most recent trading day at $351.41, moving +0.11% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.46%.

Heading into today, shares of the processor of debit and credit card payments had lost 3.62% over the past month, lagging the Business Services sector's gain of 0.13% and the S&P 500's gain of 1.93% in that time.

Wall Street will be looking for positivity from MA as it approaches its next earnings report date. In that report, analysts expect MA to post earnings of $2.18 per share. This would mark year-over-year growth of 36.25%. Our most recent consensus estimate is calling for quarterly revenue of $4.95 billion, up 28.91% from the year-ago period.

MA's full-year Zacks Consensus Estimates are calling for earnings of $8.11 per share and revenue of $18.77 billion. These results would represent year-over-year changes of +26.13% and +22.69%, respectively.

Any recent changes to analyst estimates for MA should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.27% higher within the past month. MA currently has a Zacks Rank of #3 (Hold).

In terms of valuation, MA is currently trading at a Forward P/E ratio of 43.31. This represents a premium compared to its industry's average Forward P/E of 22.11.

It is also worth noting that MA currently has a PEG ratio of 2. 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. The Financial Transaction Services was holding an average PEG ratio of 1.35 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 113, putting it in the top 45% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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