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MasterCard (MA) Stock Moves -0.12%: What You Should Know

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MasterCard (MA - Free Report) closed the most recent trading day at $345.84, moving -0.12% from the previous trading session. This change was narrower than the S&P 500's 1.11% loss on the day. At the same time, the Dow lost 0.85%, and the tech-heavy Nasdaq gained 0.1%.

Heading into today, shares of the processor of debit and credit card payments had gained 1.46% over the past month, outpacing the Business Services sector's loss of 2.52% and the S&P 500's loss of 2.19% in that time.

Investors will be hoping for strength from MasterCard as it approaches its next earnings release. The company is expected to report EPS of $2.56, up 8.94% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.75 billion, up 10.23% from the year-ago period.

MA's full-year Zacks Consensus Estimates are calling for earnings of $10.58 per share and revenue of $22.15 billion. These results would represent year-over-year changes of +25.95% and +17.29%, respectively.

Investors should also note any recent changes to analyst estimates for MasterCard. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 0.01% lower. MasterCard is currently a Zacks Rank #3 (Hold).

Looking at its valuation, MasterCard is holding a Forward P/E ratio of 32.72. This represents a premium compared to its industry's average Forward P/E of 14.56.

We can also see that MA currently has a PEG ratio of 1.76. 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. The Financial Transaction Services industry currently had an average PEG ratio of 0.88 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 36% 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.

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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