- Mastercard (MA) demonstrates strong technical momentum, recently hitting a new all-time high.
- Shares are up just 15% over the past year, but 26% over the past 6 months.
- MA’s revenue and earnings are projected to grow robustly, with double-digit increases expected over the next two years.
- I remain bullish on MA stock given its superior technicals, strong fundamentals, and broad analyst support.
Today’s Featured Stock
Valued at $556 billion, Mastercard (MA) is a leading global payment solutions company that provides an array of services in support of credit, debit, mobile, web-based, and contactless payments, and other related electronic payment programs to financial institutions and other entities.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals and superior current momentum. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. MA checks those boxes. The Trend Seeker issued a new “Buy” signal on Oct. 12. Since that signal, MA is up 6.71%.
Barchart’s Technical Indicators for Mastercard
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
Mastercard hit an all-year high of $644.20 today.
- Mastercard has a Weighted Alpha of 24.19.
- MA has a 100% “Buy” opinion from Barchart.
- The stock has gained 14.48% over the past 52 weeks.
- Mastercard has its Trend Seeker “Buy” signal intact.
- The stock recently traded at $638.51 with a 50-day moving average of $586.74.
- MA had 16 highs and gained 14.94% in the last month.
- 60-month beta of 0.76.
- Relative Strength Index (RSI) is at 70.80.
- There’s a technical support level around $620.92.
Don’t Forget the Fundamentals
- $556 billion market capitalization.
- 32.50x trailing price-earnings ratio.
- 0.54% dividend yield.
- Revenue is expected to grow 13.68% this year and another 12.62% next year.
- Earnings are estimated to increase 17.32% this year and an additional 15.61% next year.
Analyst and Investor Sentiment on Mastercard
- Wall Street analysts followed by Barchart give the stock 34 “Strong Buy,” 4 “Moderate Buy,” and 4 “Hold” opinions with price targets from $500 to $765.
- Value Line rates the stock “Above Average” with price targets between $780 and $955.
- Morningstar thinks the stock is 10% overvalued.
- CFRA’s MarketScope rates the stock a “Buy" with a price target of $730
- 208,240 investors are following the stock on Seeking Alpha, which rates it a “Hold.”
- TipRanks’ analysts have a consensus price target of $676.64.
- Short interest is 0.87% of the float with 2.56 days to cover.
The Bottom Line on Mastercard
Almost every analyst has price targets above today’s trading range. Short interest is only 0.87% of the float. I’m in for the ride.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio, it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
On the date of publication, Jim Van Meerten did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.