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(MA) Rises As Market Takes a Dip: Key Facts

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In the latest market close, MasterCard (MA - Free Report) reached $399.90, with a +0.02% movement compared to the previous day. The stock's change was more than the S&P 500's daily loss of 0.63%. Elsewhere, the Dow saw a downswing of 0.51%, while the tech-heavy Nasdaq depreciated by 0.63%.

Heading into today, shares of the processor of debit and credit card payments had lost 3.96% over the past month, lagging the Business Services sector's loss of 2.7% and the S&P 500's loss of 2.35% in that time.

Analysts and investors alike will be keeping a close eye on the performance of MasterCard in its upcoming earnings disclosure. The company's earnings report is set to go public on October 26, 2023. The company is forecasted to report an EPS of $3.20, showcasing a 19.4% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $6.52 billion, reflecting a 13.29% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.14 per share and revenue of $25.2 billion. These totals would mark changes of +13.99% and +13.34%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for MasterCard. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. MasterCard is currently a Zacks Rank #3 (Hold).

Investors should also note MasterCard's current valuation metrics, including its Forward P/E ratio of 32.94. For comparison, its industry has an average Forward P/E of 13.36, which means MasterCard is trading at a premium to the group.

Also, we should mention that MA has a PEG ratio of 1.8. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Financial Transaction Services industry currently had an average PEG ratio of 1.18 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 192, positioning it in the bottom 24% 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.

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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