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MasterCard (MA) Gains As Market Dips: What You Should Know

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In the latest trading session, MasterCard (MA - Free Report) closed at $367.29, marking a +0.95% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.04%.

Prior to today's trading, shares of the processor of debit and credit card payments had gained 0.79% over the past month. This has lagged the Business Services sector's gain of 2.71% and the S&P 500's gain of 1.35% in that time.

Wall Street will be looking for positivity from MA as it approaches its next earnings report date. The company is expected to report EPS of $1.71, up 25.74% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.35 billion, up 30.32% from the year-ago period.

MA's full-year Zacks Consensus Estimates are calling for earnings of $7.75 per share and revenue of $18.33 billion. These results would represent year-over-year changes of +20.53% and +19.78%, 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.

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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.43% lower. MA is currently a Zacks Rank #3 (Hold).

In terms of valuation, MA is currently trading at a Forward P/E ratio of 46.95. This valuation marks a premium compared to its industry's average Forward P/E of 23.83.

Investors should also note that MA has a PEG ratio of 2.12 right now. 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.3 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 181, which puts it in the bottom 29% 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.

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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