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MasterCard (MA) Rises Higher Than Market: Key Facts

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The latest trading session saw MasterCard (MA - Free Report) ending at $545.16, denoting a +0.27% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 0.46%.

The processor of debit and credit card payments's stock has dropped by 2.74% in the past month, exceeding the Business Services sector's loss of 3.54% and the S&P 500's loss of 3.59%.

The upcoming earnings release of MasterCard will be of great interest to investors. The company is forecasted to report an EPS of $3.57, showcasing a 7.85% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $7.12 billion, up 12.18% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.88 per share and revenue of $31.56 billion. These totals would mark changes of +8.77% and +12.06%, respectively, from last year.

Investors should also take note of any recent adjustments 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. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% lower. Right now, MasterCard possesses a Zacks Rank of #3 (Hold).

In terms of valuation, MasterCard is currently trading at a Forward P/E ratio of 34.23. This signifies a premium in comparison to the average Forward P/E of 15.36 for its industry.

Meanwhile, MA's PEG ratio is currently 2.38. 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 had an average PEG ratio of 1.44 as trading concluded yesterday.

The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 137, this industry ranks in the bottom 46% of all industries, numbering over 250.

The Zacks Industry Rank is ordered 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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