Visa Inc. (NYSE: V) and Mastercard Incorporated (NYSE: MA), the two dominant players in the credit card processing sector, surged to record highs on Monday, signaling renewed investor confidence and positioning both stocks in favorable buy zones.
Visa Hits New Highs, Supported by Strong Earnings and Consumer Resilience
Visa shares climbed 0.9% to $368.33, surpassing the Institutional Investor’s Business Daily (IBD) MarketSurge buy point of $366.54. The stock had previously broken out above a double-bottom base entry at $351.85 over a week ago. Visa’s relative strength line is near all-time highs, underscoring its market outperformance, while its Composite Rating stands at a robust 96.
After a dip to its 200-day moving average on April 7—attributed to tariff concerns impacting Wall Street—Visa’s stock rebounded strongly alongside broader market gains. The company’s inclusion in the IBD Leaderboard portfolio on Monday reflects growing analyst confidence.
Visa reported adjusted earnings of $2.76 per share for the March quarter, beating estimates, on a 9% revenue increase to $9.59 billion. Payment volume rose 8%, and processed transactions increased 9%, both exceeding expectations. CEO Ryan McInerney highlighted the resilience of consumer spending despite ongoing macroeconomic uncertainties.
Mastercard Also Surges, Backed by Impressive Growth Metrics
Mastercard shares edged up 0.6% to $586.17, moving above the $582.23 buy point identified by IBD. This follows a breakout above a lower entry point of $561.83 from a recent double-bottom pattern. Mastercard’s relative strength line is similarly near new highs, and the stock holds a Composite Rating of 96.
In its May 1 earnings release, Mastercard reported a 20% year-over-year increase in earnings to $3.82 per share and a 14% revenue rise to $7.49 billion, both surpassing analyst forecasts. Gross dollar volume grew 12%, purchase volume increased 13%, and switched transactions rose 11%, signaling sustained consumer spending momentum.
Mastercard CFO Sachin Mehra noted to MarketWatch that consumer spending cutbacks have yet to materialize in the data, reinforcing the narrative of a strong consumer environment.
Analyst Perspectives and Market Context
UBS analyst Timothy Chiodo emphasized that both Visa and Mastercard possess attractive investment characteristics, including high profitability, strong competitive moats, and resilience through moderate recessions. Both companies benefit from exposure to diverse spending categories, balancing discretionary and nondiscretionary expenditures.
Visa and Mastercard are part of IBD’s credit card and payment processing industry group, which ranks 59th out of 197 industries in terms of performance.
Volatility Metrics and Market Trends
Visa’s 21-day Average True Range (ATR) is 1.95%, while Mastercard’s ATR stands at 1.99%. ATR measures daily price volatility; stocks with moderate ATRs like Visa and Mastercard tend to experience steadier price movements, which can be advantageous for investors during trending markets.
With the S&P 500 and Nasdaq currently in strong uptrends, investors are advised to consider stocks with ATRs up to 8%, though caution is warranted against overconcentration in highly volatile names. As recent market volatility subsides, many stocks’ ATRs are expected to decrease, potentially reducing trading risks.
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