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MasterCard (MA) Gains But Lags Market: What You Should Know

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MasterCard (MA - Free Report) closed the most recent trading day at $346.44, moving +0.51% from the previous trading session. This change lagged the S&P 500's 1.24% gain on the day. Meanwhile, the Dow gained 1.23%, and the Nasdaq, a tech-heavy index, added 0.15%.

Heading into today, shares of the processor of debit and credit card payments had lost 9.99% over the past month, lagging the Business Services sector's loss of 6.03% and the S&P 500's loss of 2.45% in that time.

Investors will be hoping for strength from MasterCard as it approaches its next earnings release. On that day, MasterCard is projected to report earnings of $2.20 per share, which would represent year-over-year growth of 26.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.94 billion, up 19.01% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.29 per share and revenue of $22.34 billion, which would represent changes of +22.5% and +18.32%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for MasterCard. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.52% lower. MasterCard is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, MasterCard is holding a Forward P/E ratio of 33.49. This represents a premium compared to its industry's average Forward P/E of 15.98.

Meanwhile, MA's PEG ratio is currently 1.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial Transaction Services industry currently had an average PEG ratio of 1.13 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 213, putting it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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