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MasterCard (MA) Stock Moves -0.27%: What You Should Know

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In the latest trading session, MasterCard (MA - Free Report) closed at $346.80, marking a -0.27% move from the previous day. This change was narrower than the S&P 500's 0.4% loss on the day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 4.72%.

Prior to today's trading, shares of the processor of debit and credit card payments had lost 2.35% over the past month. This has was narrower than the Business Services sector's loss of 6.78% and the S&P 500's loss of 5.57% in that time.

Investors will be hoping for strength from MasterCard as it approaches its next earnings release. In that report, analysts expect MasterCard to post earnings of $2.56 per share. This would mark year-over-year growth of 8.94%. Our most recent consensus estimate is calling for quarterly revenue of $5.75 billion, up 10.27% from the year-ago period.

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.

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 0.19% lower. MasterCard currently has a Zacks Rank of #4 (Sell).

Digging into valuation, MasterCard currently has a Forward P/E ratio of 32.86. This valuation marks a premium compared to its industry's average Forward P/E of 16.3.

Investors should also note that MA has a PEG ratio of 1.77 right now. 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 0.84 based on yesterday's closing prices.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 176, which puts it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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


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