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MasterCard (MA) Ascends But Remains Behind Market: Some Facts to Note

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In the latest trading session, MasterCard (MA - Free Report) closed at $488.04, marking a +0.83% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.89%. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 1.25%.

The processor of debit and credit card payments's stock has climbed by 7.14% in the past month, exceeding the Business Services sector's gain of 2.36% and the S&P 500's gain of 3.56%.

The investment community will be paying close attention to the earnings performance of MasterCard in its upcoming release. The company is expected to report EPS of $3.23, up 15.36% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.34 billion, up 10.27% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $14.37 per share and revenue of $28.12 billion, indicating changes of +17.21% and +12.06%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for MasterCard. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. MasterCard currently has a Zacks Rank of #3 (Hold).

Digging into valuation, MasterCard currently has a Forward P/E ratio of 33.69. This represents a premium compared to its industry's average Forward P/E of 14.5.

Investors should also note that MA has a PEG ratio of 1.84 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Financial Transaction Services industry currently had an average PEG ratio of 1.18 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 38, positioning it in the top 16% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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