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MasterCard (MA) Stock Moves -0.4%: What You Should Know

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MasterCard (MA - Free Report) closed the most recent trading day at $373.90, moving -0.4% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.94%. At the same time, the Dow lost 1.07%, and the tech-heavy Nasdaq lost 0.39%.

Heading into today, shares of the processor of debit and credit card payments had gained 10.57% over the past month, outpacing the Business Services sector's loss of 8.97% and the S&P 500's gain of 5.72% in that time.

MasterCard will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.19, up 33.54% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.12 billion, up 24.37% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for MasterCard. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% lower. MasterCard is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, MasterCard is currently trading at a Forward P/E ratio of 35.93. This valuation marks a premium compared to its industry's average Forward P/E of 18.08.

We can also see that MA currently has a PEG ratio of 1.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial Transaction Services was holding an average PEG ratio of 1.11 at yesterday's closing price.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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