Why the Market Dipped But MasterCard (MA) Gained Today

MasterCard (MA) closed the most recent trading day at $549.07, moving +0.72% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.12%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 2.04%.Coming into today, shares of the processor of debit and credit card payments had lost 3.35% in the past month. In that same time, the Business Services sector lost 3.38%, while the S&P 500 lost 2.91%.Market participants will be closely following the financial results of MasterCard in its upcoming release. The company's upcoming EPS is projected at $3.57, signifying a 7.85% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $7.12 billion, indicating a 12.18% growth compared to the corresponding quarter of the prior year.For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.88 per share and a revenue of $31.56 billion, representing changes of +8.77% and +12.06%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.15% fall in the Zacks Consensus EPS estimate. As of now, MasterCard holds a Zacks Rank of #3 (Hold).In terms of valuation, MasterCard is currently trading at a Forward P/E ratio of 34.33. This indicates a premium in contrast to its industry's Forward P/E of 15.47.Investors should also note that MA has a PEG ratio of 2.39 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 1.44.The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 130, positioning it in the bottom 49% of all 250+ industries.The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mastercard Incorporated (MA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks