Mastercard Inc MA and Visa Inc V, two major players in the global payment technology sector, have posted quarterly earnings that exceeded expectations. As these companies navigate fluctuating markets, investors are left contemplating whether to buy, sell, or hold their stocks based on the latest insights.

Analyzing Stock Trends for Visa and Mastercard

Recent analysis indicates that both Visa and Mastercard are currently considered overbought, which may signal an impending price correction, according to Benzinga Pro.

Visa shares finished Thursday at $343.05, significantly exceeding its eight-day simple moving average of $331.69 and its 20-day average of $320.65. It also surpassed its 50-day and 200-day averages of $316.42 and $285.73 respectively. The stock’s relative strength index (RSI) of 80.35 suggests that the rapid rise in price may not be sustainable, pointing to potential short-term adjustments ahead.

See Also: Visa Shares Rise On Solid Q1 Results: Details

Similarly, Mastercard also shows overbought signals, closing Thursday at $566.01. This price notably surpasses its eight-day average of $541.60 and its 20-day average of $526.54, as well as its 50-day and 200-day averages of $526.67 and $484.31, respectively. With an RSI of 76.67, analysts regard this situation as indicative of potential downward price movements ahead.

See Also: Mastercard Q4 Earnings: Revenue And EPS Beat, Strong Growth In Payments and Cross-Border Transactions

Insights from Analysts on Stock Prospects

While the warning from technical analysis raises eyebrows, analysts generally recommend a ‘buy’ for both companies. Consensus points toward optimism for Visa, with 34 analysts assigning an average price target of $324.06, ranging between $252 and $375. Ratings from firms like Piper Sandler, BofA Securities, and Citigroup propose a target of $351, suggesting a modest 0.90% upside potential.

See Also: Elon Musk’s ‘X Money’ To See About 600 Million Active Monthly Users Via Visa Direct Integration: ‘Excited To Partner,’ Says CEO

For Mastercard, the average price target among 34 analysts is set at $542.84, with estimates stretching from $424 to $654. The targets offered by Piper Sandler, Citigroup, and Oppenheimer hover around $587.67, presenting a potential upside of about 3.53% for investors.

Market Movement: In premarket trading on Friday, Visa shares rose by 1.41%, while Mastercard increased by 0.29%. The SPDR S&P 500 ETF Trust SPY also saw a rise of 0.49%, reaching $608.01.

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