Mastercard Vs. Visa: Buy, Sell Or Hold? Here's What Technical Analysis Suggest

Global payment technology companies, Mastercard Inc MA and Visa Inc V, which process credit card payments and other financial transactions reported better-than-expected quarterly earnings on Thursday. Shall investors buy, sell or hold these companies? Here’s what technical analysis suggests.

Technical Analysis Of Visa And Mastercard

Technical analysis suggests both Visa and Mastercard stocks are currently overbought, indicating a potential correction may be imminent, according to Benzinga Pro.

Visa shares closed Thursday at $343.05, significantly above its eight-day simple moving average of $331.69, 20-day average at $320.65, also 50 and 200-day averages of $316.42, and $285.73, respectively. The relative strength index of 80.35 further reinforces this overbought condition, suggesting recent rapid price increases may be unsustainable.

Mastercard shares, on the other hand, also exhibited a similar trend, closing Thursday at $566.01. This price is well above its eight-day average of $541.60, and 20-day average of $526.54. Also, 50 and 200-day averages of $526.67 and $484.31, respectively. With an RSI of 76.67, Mastercard’s stock is also considered overbought, signaling potential exhaustion of upward momentum and a possible sell signal.

Analyst Recommendations

Despite the warning signs from the technical analysis of daily moving averages, ratings based on analysts tracked by Benzinga have a consensus ‘buy’ on both stocks.

Visa also enjoys a consensus “buy” rating. The average price target among 34 analysts is $324.06, with a range of $252 to $375. Recent ratings from Piper Sandler, BofA Securities, and Citigroup suggest a $351 target, implying a 0.90% upside.

For Mastercard, the average price target among 34 analysts is $542.84, with estimates ranging from $424 to $654. Recent ratings from Piper Sandler, Citigroup, and Oppenheimer suggest a $587.67 target, implying a potential upside of 3.53%.

Price Action: Shares of Visa were up 1.41% and Mastercard advanced 0.29% in premarket on Friday. Whereas the exchange-traded fund tracking S&P 500, SPDR S&P 500 ETF Trust SPY was up 0.49% at $608.01.

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