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MasterCard (MA) Gains As Market Dips: What You Should Know

MasterCard (MA) closed at $304.20 in the latest trading session, marking a +0.97% move from the prior day. This change outpaced the S&P 500's 0.2% loss on the day. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.12%.

Prior to today's trading, shares of the processor of debit and credit card payments had lost 7.04% over the past month. This has lagged the Business Services sector's loss of 5.48% and the S&P 500's loss of 3.29% in that time.

MasterCard will be looking to display strength as it nears its next earnings release. On that day, MasterCard is projected to report earnings of $2.58 per share, which would represent year-over-year growth of 8.86%. Our most recent consensus estimate is calling for quarterly revenue of $5.66 billion, up 13.54% from the year-ago period.

MA's full-year Zacks Consensus Estimates are calling for earnings of $10.62 per share and revenue of $22.23 billion. These results would represent year-over-year changes of +26.43% and +17.7%, respectively.

Investors should also note any recent changes to analyst estimates for MasterCard. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.12% lower within the past month. MasterCard is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note MasterCard's current valuation metrics, including its Forward P/E ratio of 28.36. This valuation marks a premium compared to its industry's average Forward P/E of 16.98.

We can also see that MA currently has a PEG ratio of 1.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Financial Transaction Services stocks are, on average, holding a PEG ratio of 1.06 based on yesterday's closing prices.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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