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

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MasterCard (MA - Free Report) closed at $264.45 in the latest trading session, marking a +1.28% move from the prior day. This move outpaced the S&P 500's daily gain of 0.58%. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, added 0.48%.

Coming into today, shares of the processor of debit and credit card payments had gained 2.72% in the past month. In that same time, the Business Services sector gained 4.24%, while the S&P 500 gained 3.62%.

Wall Street will be looking for positivity from MA as it approaches its next earnings report date. In that report, analysts expect MA to post earnings of $1.82 per share. This would mark year-over-year growth of 9.64%. Our most recent consensus estimate is calling for quarterly revenue of $4.10 billion, up 11.81% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.60 per share and revenue of $16.78 billion. These totals would mark changes of +17.1% and +12.22%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for MA. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 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. MA is currently a Zacks Rank #3 (Hold).

In terms of valuation, MA is currently trading at a Forward P/E ratio of 34.34. This valuation marks a premium compared to its industry's average Forward P/E of 23.63.

It is also worth noting that MA currently has a PEG ratio of 2.07. 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. MA's industry had an average PEG ratio of 1.94 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 43, putting it in the top 17% 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.

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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