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

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MasterCard (MA) closed the most recent trading day at $325.03, moving +0.51% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 0.34%.

Heading into today, shares of the processor of debit and credit card payments had lost 0.62% over the past month, lagging the Business Services sector's gain of 2.26% and the S&P 500's gain of 1.51% in that time.

MasterCard will be looking to display strength as it nears its next earnings release, which is expected to be July 28, 2022. The company is expected to report EPS of $2.35, up 20.51% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.26 billion, up 16.18% from the year-ago period.

MA's full-year Zacks Consensus Estimates are calling for earnings of $10.52 per share and revenue of $22.14 billion. These results would represent year-over-year changes of +25.24% and +17.26%, respectively.

Any recent changes to analyst estimates for MasterCard should also be noted by investors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. MasterCard is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, MasterCard is holding a Forward P/E ratio of 30.73. This represents a premium compared to its industry's average Forward P/E of 13.6.

It is also worth noting that MA currently has a PEG ratio of 1.52. 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. The Financial Transaction Services was holding an average PEG ratio of 1 at yesterday's closing price.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 154, putting it in the bottom 39% 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 Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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