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MasterCard (MA) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, MasterCard (MA - Free Report) closed at $332.24, marking a -0.64% move from the previous day. This change lagged the S&P 500's 0.21% loss on the day. Meanwhile, the Dow lost 0.67%, and the Nasdaq, a tech-heavy index, added 0.51%.

Heading into today, shares of the processor of debit and credit card payments had gained 0.7% over the past month, lagging the Business Services sector's gain of 4.79% and the S&P 500's gain of 4% 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 $1.53 per share. This would mark a year-over-year decline of 21.94%. Our most recent consensus estimate is calling for quarterly revenue of $4.02 billion, down 8.97% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.35 per share and revenue of $15.20 billion, which would represent changes of -18.28% and -9.99%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for MA. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

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 0.03% higher. MA currently has a Zacks Rank of #4 (Sell).

Digging into valuation, MA currently has a Forward P/E ratio of 52.69. For comparison, its industry has an average Forward P/E of 25.53, which means MA is trading at a premium to the group.

Also, we should mention that MA has a PEG ratio of 3.16. 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 1.96 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 207, putting it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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