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MasterCard (MA) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest market close, MasterCard (MA - Free Report) reached $515.01, with a -0.26% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.18%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, added 0.27%.

Prior to today's trading, shares of the processor of debit and credit card payments had gained 4.79% over the past month. This has outpaced the Business Services sector's gain of 4.62% and the S&P 500's gain of 4.46% in that time.

The upcoming earnings release of MasterCard will be of great interest to investors. The company's earnings report is expected on October 31, 2024. The company is predicted to post an EPS of $3.73, indicating a 10.03% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $7.25 billion, indicating a 10.95% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.32 per share and revenue of $27.93 billion. These totals would mark changes of +16.8% and +11.3%, respectively, from last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for MasterCard. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.21% higher. MasterCard currently has a Zacks Rank of #2 (Buy).

With respect to valuation, MasterCard is currently being traded at a Forward P/E ratio of 36.05. This signifies a premium in comparison to the average Forward P/E of 17.89 for its industry.

It is also worth noting that MA currently has a PEG ratio of 2.29. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 1.32.

The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 90, finds itself in the top 36% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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