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MasterCard (MA) Stock Moves -0.17%: What You Should Know

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MasterCard (MA - Free Report) closed at $428.35 in the latest trading session, marking a -0.17% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.37%. Meanwhile, the Dow experienced a drop of 0.62%, and the technology-dominated Nasdaq saw a decrease of 0.19%.

The processor of debit and credit card payments's stock has climbed by 1.1% in the past month, exceeding the Business Services sector's loss of 0.06% and lagging the S&P 500's gain of 1.56%.

The investment community will be paying close attention to the earnings performance of MasterCard in its upcoming release. The company is slated to reveal its earnings on January 31, 2024. The company is expected to report EPS of $3.08, up 16.23% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $6.45 billion, showing a 10.94% escalation compared to the year-ago quarter.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for MasterCard. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.18% higher. At present, MasterCard boasts a Zacks Rank of #2 (Buy).

Looking at its valuation, MasterCard is holding a Forward P/E ratio of 30.22. Its industry sports an average Forward P/E of 12.52, so one might conclude that MasterCard is trading at a premium comparatively.

It's also important to note that MA currently trades at a PEG ratio of 1.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 1.13.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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