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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 $376.53, marking a -0.66% move from the previous day. This change lagged the S&P 500's daily loss of 0.37%. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq lost 1.18%.

Heading into today, shares of the processor of debit and credit card payments had lost 3.31% over the past month, lagging the Business Services sector's gain of 6.64% and the S&P 500's gain of 7.18% in that time.

MasterCard will be looking to display strength as it nears its next earnings release. In that report, analysts expect MasterCard to post earnings of $2.98 per share. This would mark year-over-year growth of 16.41%. Meanwhile, our latest consensus estimate is calling for revenue of $6.18 billion, up 12.48% from the prior-year quarter.

MA's full-year Zacks Consensus Estimates are calling for earnings of $12.25 per share and revenue of $25.15 billion. These results would represent year-over-year changes of +15.02% and +13.11%, respectively.

Investors might also notice recent changes to analyst estimates for MasterCard. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 0.13% lower. MasterCard is currently a Zacks Rank #3 (Hold).

Investors should also note MasterCard's current valuation metrics, including its Forward P/E ratio of 30.93. This valuation marks a premium compared to its industry's average Forward P/E of 14.42.

We can also see that MA currently has a PEG ratio of 1.77. 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. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.17 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 162, putting it in the bottom 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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