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Visa and MasterCard Pullback from Recent Highs - Time to Buy? (V, MA)
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Shares of Visa (NYSE: V) and MasterCard (NYSE: MA) are under pressure today, despite the broader markets being modestly higher on the day. Visa most recently traded at $77.77, down $3.08, or about 3.8%, while MasterCard's last trade occured at $274.53, down $4.03, or about $1.5%.
The two "best of breed" plays within the consumer financial services industry, Visa and MasterCard appear to be the outliers today as peers American Express (NYSE: AXP) and Discover Financial (NYSE: DFS) are up about 2.5% and 1%, respectively.
Following the initial surge in Visa's stock price after its IPO on March 19, which also created upside in shares of MasterCard, the two credit card company's have since pulled back from record highs: shares of Visa moved as high as $89.84 (on May 7) just a day after MasterCard broke the $300 level, but both stocks have fallen about 9% from these levels.
Considering each company's RSI (relative strength index), Visa and MasterCard seem to be moving to their most unfavorable levels since Visa went public. Visa's RSI has moved to about 47, meaning it is relatively oversold compared to where this technical indicator has been, while MasterCard's RSI has dropped from 85 at its 52-week high to 54 today, implying similar technical trends.
Traders often use indicators such as the RSI to determine if a trend is likely to continue. With a recent decline in positive market sentiment about these two popular stocks, could the RSI be signaling a new trend to the downside or an attractive entry point for investors predicting a continuation of an uptrend? Stay tuned to StreetInsider to find out...
Visa, Inc., through its subsidiaries, operates retail electronic payments network worldwide.
MasterCard Incorporated, together with its subsidiaries, provides transaction processing and related services to customers principally in support of their credit, deposit access, electronic cash and automated teller machine payment card programs, and travelers cheque programs.
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+1.12Comments View All Comments
visa
I intend to hold
Buy Now
I think its time to buy VISA, this stock will reach 200 to 300 if not this year later on. rben i think what u did is good but u must wait. this is a correction time after IPO.
Visa
Don't sell Visa, but more! As the economy tanks Visa will benefit because people are using debit and credit cards more than cash. The speculators want u 2 sell because they sold out only hours after the IPO and want to but below $76/share.
Visa forever
I yanked all my AAPL shares and bought visa. If you can buy and hold this stock, it'll be between 90-120 for sure this year! I just bought more...
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Visa
Francoys Arsenault (Montréal) on May 29, 2008 07:11 AMBuy ! Buy! Buy! and hold Under $100 it's a deal Good luck Francoys Pl.Fin.