Credit card giant Mastercard is trading near its all-time high from a couple of weeks ago. It's posted double-digit profit and sales growth the past three quarters in a row, and earned an upgrade to its Relative Strength (RS) Rating on Wednesday, from 79 to 82. The upgraded RS Rating pushes Mastercard stock up into an exclusive group.
The 82 RS Rating shows that Mastercard stock is in the top 18% of stocks for price performance this past year. Market research reveals that the market's biggest winners often have an 80 or higher RS Rating in the early stages of their moves. Mastercard just joined that club.
Hone Your Stock-Picking Skills By Focusing On These Factors
Mastercard Stock Ratings Score High
The Purchase, N.Y.-based company reported a 20% rise in earnings to $3.18 per share last quarter. Revenue grew 13% to $6.55 billion. Look for the next report on or around April 25.
Among its other ratings Mastercard stock has a terrific 96 Composite Rating out of 99. The Composite Rating, an amalgam of IBD's other ratings, is a good indicator of a company's technical and fundamental strengths.
Additionally, Mastercard boasts a 94 Earnings Per Share Rating and a top-notch SMR Rating (sales + profit margins + return on equity) of A on an A-to-E scale with A best and E worst.
One yellow flag is its D+ Accumulation/Distribution Rating, showing that mutual funds, insurance company funds and other institutional investors are selling more shares than buying. Look for that to improve to a C or better rating.
Watchlist candidate Mastercard stock has been a steady performer, rising consistently over time. It hit a near-term intraday low at 276.87 on Oct. 13, 2022 and has risen about 73% since then. Wednesday afternoon Mastercard traded at 479.63, up slightly for the day. It rose to an all-time high 490 on March 21.
Looking For A Clear Buy Point
It cleared a 418.60 buy point in a first-stage flat base on Dec. 12 last year. It hasn't formed a clear base yet. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks-tight base or pullback to the 50-day or 10-week line.
Mastercard stock holds the No. 9 rank among its peers in the 38-stock Finance-Card/Payment Processing industry group. American Express, Kaspi.kz and Paymentus Holdings are among the top five highly rated stocks in the group.
The unique Relative Strength Rating identifies market leadership by showing how a stock's price action over the last 52 weeks compares to that of other stocks on the major indexes.
Please follow James DeTar on X, formerly known as Twitter, @JimDeTar
RELATED:
IBD Stock Rating Upgrades: Rising Relative Strength
Profit From Short-Term Trends With SwingTrader
Why Should You Use IBD's Relative Strength Rating?
Ready To Grow Your Investing Skills? Join An IBD Meetup Group!
Watch Our Market Experts Spot Top Stocks Each Morning On IBD Live
