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MasterCard (MA) Gains But Lags Market: What You Should Know

MasterCard (MA) closed at $347.82 in the latest trading session, marking a +0.12% move from the prior day. This move lagged the S&P 500's daily gain of 0.23%.

Prior to today's trading, shares of the processor of debit and credit card payments had lost 4.23% over the past month. This has lagged the Business Services sector's gain of 0.17% and the S&P 500's gain of 0.65% in that time.

Investors will be hoping for strength from MA as it approaches its next earnings release. The company is expected to report EPS of $2.18, up 36.25% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.95 billion, up 28.91% from the year-ago period.

MA's full-year Zacks Consensus Estimates are calling for earnings of $8.11 per share and revenue of $18.77 billion. These results would represent year-over-year changes of +26.13% and +22.69%, respectively.

Investors should also note any recent changes to analyst estimates for MA. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 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. The Zacks Consensus EPS estimate has moved 0.27% higher within the past month. MA is currently a Zacks Rank #3 (Hold).

Investors should also note MA's current valuation metrics, including its Forward P/E ratio of 42.86. This valuation marks a premium compared to its industry's average Forward P/E of 21.42.

We can also see that MA currently has a PEG ratio of 1.98. 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. MA's industry had an average PEG ratio of 1.31 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 119, which puts it in the top 47% 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.

To follow MA in the coming trading sessions, be sure to utilize Zacks.com.


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