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MasterCard (MA) Stock Moves -0.31%: What You Should Know

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MasterCard (MA - Free Report) closed at $174.65 in the latest trading session, marking a -0.31% move from the prior day. This change was narrower than the S&P 500's 2.71% loss on the day. Meanwhile, the Dow lost 2.91%, and the Nasdaq, a tech-heavy index, lost 2.21%.

Coming into today, shares of the processor of debit and credit card payments had lost 6.64% in the past month. In that same time, the Business Services sector lost 9.02%, while the S&P 500 lost 8.68%.

MA will be looking to display strength as it nears its next earnings release, which is expected to be February 7, 2019. On that day, MA is projected to report earnings of $1.52 per share, which would represent year-over-year growth of 33.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.79 billion, up 14.44% from the year-ago period.

MA's full-year Zacks Consensus Estimates are calling for earnings of $6.44 per share and revenue of $14.93 billion. These results would represent year-over-year changes of +40.61% and +19.5%, respectively.

It is also important to note the recent changes to analyst estimates for MA. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.11% higher. MA is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note MA's current valuation metrics, including its Forward P/E ratio of 27.19. Its industry sports an average Forward P/E of 17.68, so we one might conclude that MA is trading at a premium comparatively.

Meanwhile, MA's PEG ratio is currently 1.5. 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 1.29 based on yesterday's closing prices.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 34, putting it in the top 13% 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.

To follow MA in the coming trading sessions, be sure to utilize Zacks.com.


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