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MasterCard (MA) Stock Moves -0.33%: What You Should Know

Zacks Equity Research

MasterCard (MA) closed the most recent trading day at $271.23, moving -0.33% from the previous trading session. This change was narrower than the S&P 500's 0.48% loss on the day. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq lost 0.78%.

Coming into today, shares of the processor of debit and credit card payments had gained 5.55% in the past month. In that same time, the Business Services sector gained 4.66%, while the S&P 500 gained 5.97%.

Wall Street will be looking for positivity from MA as it approaches its next earnings report date. This is expected to be July 30, 2019. The company is expected to report EPS of $1.82, up 9.64% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.10 billion, up 11.81% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.60 per share and revenue of $16.78 billion, which would represent changes of +17.1% and +12.22%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for MA. Recent revisions tend to reflect the latest 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.04% lower. MA currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that MA has a Forward P/E ratio of 35.81 right now. This valuation marks a premium compared to its industry's average Forward P/E of 24.42.

It is also worth noting that MA currently has a PEG ratio of 2.15. 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 industry currently had an average PEG ratio of 2 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 66, which puts it in the top 26% 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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