The Street looks for growth for financial companies like Mastercard to accelerate as interest rates climb. Recent market consolidation has tamped down growth prospects. Still, on Tuesday the Relative Strength (RS) Rating for Mastercard stock rose to 74, up from 67 earlier. Some of its other ratings are even higher.
Mastercard Stock's Other Ratings Shine
Among its other key ratings, credit card giant Mastercard has a 93 EPS Rating, of 99, putting it in the top 7% of all stocks on profit growth. Mastercard stock's Composite Rating, a composite of the top five other ratings IBD uses, is a strong 94. Purchase, New York-based Mastercard has a C- Accumulation/Distribution Rating, showing that slightly more institutional investors are selling its shares than buying.
The new 74 RS Rating shows that Mastercard stock has outperformed 74% of all companies on stock price performance over the past year. Market research shows that stocks that go on to make the biggest gains typically have an RS Rating north of 80 in the early stages of their moves. See if Mastercard can continue to show renewed price strength and hit that benchmark.
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Earnings grew 59% to $2.76 per share in the company's most recent report, up from 43% growth the prior quarter, and the strongest quarterly growth in at least a year. Sales grew 24% to $5.17 billion last quarter, down from 27% growth the prior quarter but still relatively strong.
Mastercard stock has held up better than many stocks during the pandemic and recent market consolidation. Its stock has traded roughly between 300 and 400 a share since April 2021. On Tuesday Mastercard stock was down about 3% to 338.21 in sync with the market drop. Meanwhile, the company is working on a consolidation with a 401.60 entry. See if it can clear the breakout price in volume at least 40% higher than normal.
Mastercard stock earns the No. 2 rank among its peers in the Finance-Card/Payment Processing industry group. Visa and government and commercial fleet payment processing and management services company WEX are also among the group's highest-rated stocks.
As you try to find the best stocks to buy and watch, be sure to pay attention to relative price strength.
IBD's proprietary RS Rating identifies technical performance by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
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