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MasterCard (MA) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, MasterCard (MA - Free Report) closed at $382.16, marking a +0.55% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.2%.

Coming into today, shares of the processor of debit and credit card payments had gained 1.31% in the past month. In that same time, the Business Services sector lost 14.43%, while the S&P 500 gained 3.28%.

Wall Street will be looking for positivity from MA as it approaches its next earnings report date. This is expected to be July 29, 2021. On that day, MA is projected to report earnings of $1.72 per share, which would represent year-over-year growth of 26.47%. Our most recent consensus estimate is calling for quarterly revenue of $4.36 billion, up 30.82% from the year-ago period.

MA's full-year Zacks Consensus Estimates are calling for earnings of $7.77 per share and revenue of $18.35 billion. These results would represent year-over-year changes of +20.84% and +19.95%, respectively.

Investors should also note any recent changes to analyst estimates for MA. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.31% higher within the past month. MA is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, MA is currently trading at a Forward P/E ratio of 48.89. This represents a premium compared to its industry's average Forward P/E of 23.68.

Investors should also note that MA has a PEG ratio of 2.21 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.27 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 89, putting it in the top 36% 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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