While Visa and Mastercard have more ubiquitous name recognition, fintech leader Paymentus outranks both in terms of Composite Rating. As all three billing and payments firms eye new buy points, Paymentus looks to finance a fresh breakout with signs of rising technical strength.
Joining industry peer StoneCo, which is also setting up, Paymentus earns a spot on the Investor's Business Daily Breakout Stocks Index. But with an eye on rules for how to buy stocks and when to sell, investors should note that the new cup pattern for Paymentus is a riskier, late-stage base.
Paymentus Looks To Bankroll A Breakout
Based in Charlotte, N.C., Paymentus provides cloud-based bill payment technology and solutions. The fintech firm provides a technology stack to more than 2,500 billers and financial institutions. It services tens of millions of consumers and businesses across North America, with a client roster covering a variety of industry verticals, including utilities, financial services, insurance, government, telecommunications and health care.
With a 95 Composite Rating, Paymentus outpaces 95% of all stocks in IBD's database. Among its industry peers, only StoneCo tops it with a 96 rating. Mastercard and Visa both trail with Composite Ratings of 89 and 78, respectively.
Paymentus continues to work on a cup pattern with a 40.43 buy point. In a sign of rising technical strength, the 21-day exponential moving average has climbed back above the longer-term 50-day line. While still shy of its 52-week high, the relative strength line has turned higher.
Showing demand for shares, Paymentus sports a B+ Accumulation/Distribution Rating. And 15 funds with an A+ or A rating from IBD have a position in the stock.
See All Names On The IBD Breakout Stocks Index
Fintech Peers Visa, Mastercard And StoneCo Also Eye Buy Points
While Paymentus works on a later-stage base, Mastercard, Visa and StoneCo look to complete early-stage setups.
Mastercard stock briefly cleared a 594.71 buy point in a first-stage cup on Aug. 22 before slipping back below that entry. Like Paymentus, Mastercard's 21-day line has climbed back above the 50-day benchmark.
Visa stock continues to form an early stage double bottom. The buy point is 359.66. While its RS line stands far below a 52-week high, the credit card giant has jumped back above its 50-day line.
StoneCo continues to try and recover from a sharp decline that began in February 2021. But the highly rated fintech continues is now trading above its rising 10-week moving average as it forms a cup with handle, showing a buy point of 16. On Wednesday, the stock edged higher for a fifth-straight day, closing just 1% below that entry.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
