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MasterCard (MA) Stock Moves -1.25%: What You Should Know

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In the latest trading session, MasterCard (MA - Free Report) closed at $186.92, marking a -1.25% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.82%. Elsewhere, the Dow lost 2.21%, while the tech-heavy Nasdaq lost 1.7%.

Coming into today, shares of the processor of debit and credit card payments had lost 7.44% in the past month. In that same time, the Business Services sector lost 4.41%, while the S&P 500 lost 2.57%.

MA will be looking to display strength as it nears its next earnings release, which is expected to be February 7, 2019. In that report, analysts expect MA to post earnings of $1.52 per share. This would mark year-over-year growth of 33.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.79 billion, up 14.37% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.43 per share and revenue of $14.93 billion. These totals would mark changes of +40.39% and +19.46%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for MA. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.85% higher within the past month. MA is currently a Zacks Rank #3 (Hold).

Digging into valuation, MA currently has a Forward P/E ratio of 29.43. This represents a premium compared to its industry's average Forward P/E of 18.99.

Meanwhile, MA's PEG ratio is currently 1.62. 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.47 based on yesterday's closing prices.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 26, which puts it in the top 10% 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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