Mastercard's most recent trend suggests a bullish bias. One trading opportunity on Mastercard is a Bull Put Spread using a strike $277.50 short put and a strike $272.50 long put offers a potential 49.25% return on risk over the next 21 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $277.50 by expiration. The full premium credit of $1.65 would be kept by the premium seller. The risk of $3.35 would be incurred if the stock dropped below the $272.50 long put strike price.
The 5-day moving average is moving up which suggests that the short-term momentum for Mastercard is bullish and the probability of a rise in share price is higher if the stock starts trending.
The 20-day moving average is moving up which suggests that the medium-term momentum for Mastercard is bullish.
The RSI indicator is at 66.48 level which suggests that the stock is neither overbought nor oversold at this time.
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LATEST NEWS for Mastercard
Square Stock is Overvalued But Could Go Higher
Wed, 24 Jul 2019 17:05:46 +0000
Square (NYSE:SQ) stock has seen a nice boost in the past two months. Trading around $60 in early June, shares in the payment processing disruptor have soared to nearly $80 a share.Source: Shutterstock With expansion into other services, and analysts increasingly bullish on Square stock, is it time to buy?Compared to peers, SQ appears overvalued. With high expectations of growth, Square needs to deliver in order to justify its current valuation. Does Square have upside in the short term?InvestorPlace – Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Sell This Summer Earnings Season Read on to see whether SQ stock is a buy today. Analysts Increasingly Bullish on SQ StockThe analyst community has become increasingly bullish on Square stock. Earlier this month, Raymond James's John Davis upgraded the stock from "Underperform" to "Market Perform." Davis initially was bearish on the company's valuation relative to growth expectations. He believes the company could see a boost in shares if second quarter earnings beat their guidance.Argus analyst Stephen Biggar is also bullish on Square's prospects. Initiating coverage earlier this month, Biggar gave the company a "Buy" rating, with a price target of $94 a share. Believing the company is positioned to capitalize on the migrations of payments to mobile applications, he is highly confident the company will meet sales growth expectations.But with sales slowing down, are the analysts on point? Let's take a look at Square's first quarter earnings release, and whether results will meet guidance for the second quarter. Square's Past and Future EarningsThe company had a strong first quarter, with revenue up 43% year-over-year (YoY). However, YoY revenue growth is slowing down. In the fourth quarter of 2018, YoY sales growth was 51%. With this slight slowdown, investors may be concerned that the SQ growth story is fading out.But the company has multiple avenues to expand their presence in the business services space. Thanks to the acquisition of Weebly, Square has launched Square Online Store. This platform gives Square the opportunity to seize market share from e-commerce dynamo Shopify (NYSE:SHOP).The launch of Square Invoices is another area of growth potential. By providing payments processing, online store software, and an invoicing application, Square is now a one-stop shop for the back-end needs of small businesses.SQ's Cash App also has potential to disrupt much of PayPal's (NASDAQ:PYPL) Venmo peer-to-peer payments business. PayPal is ahead in terms of monetizing Venmo. Venmo and competitor Zelle also have stronger projected usage going into 2022. To keep Cash App from turning into an "also-ran," Square has its work cut out for them.Square announces second quarter earnings in early August. Based on guidance provided in the first quarter press release, SQ estimates YoY sales growth of 43% for the second quarter. For the full year, the company also projects revenue growth of 43% in 2019 from 2018. This is an improvement over prior guidance, which projected 41% revenue growth for the year.It is clear that Square's growth is slowing down, but the business continues to compound at a rapid clip. With high growth expectations, is the company's current valuation (high premium to peers) justified? Square Stock Pricey Compared to PeersCompared to its peers, Square stock is expensive. SQ trades at a Enterprise Value to EBITDA ratio (EV/EBITDA) of 1,270. Here are the EV/EBITDA ratios for Square's competitors:PayPal: EV/EBITDA of 48Mastercard (NYSE:MA): EV/EBITDA of 31Visa (NYSE:V): EV/EBITDA of 27.8Using the EV/EBITDA metric may not be relevant in determining the company's current valuation. Square is still in growth mode, and is years away from posting high operating margins. With substantial sales growth over the coming years, once the company becomes a cash generator, SQ stock's valuation should begin to trade in line with PayPal. The question is whether this current potential upside is already reflected in the current market value of Square stock ($33.6 billion market capitalization). Bottom Line: SQ Overvalued, But Could Go HigherSquare stock's valuation is due to high investor expectations. The company's payments processing business, sometimes referred to as "payments as a service" (PaaS) is a game changer in processing payments for small businesses. With their expansion into back-end business services (online store and invoicing software) and peer-to-peer payments, the company is becoming a stronger competitor to PayPal and Shopify.At the current trading price (around $80 a share), SQ stock could tread water from now until the next earnings call. Failure to meet high expectations could impact the stock, causing a dip (as seen after the first quarter earnings release).Investors looking for an opportunity may find a better entry point a few weeks down the road. Long-term, Square's successful disruption of the payments space could make the stock a strong performer.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 5G Stocks to Connect Your Portfolio To * 7 Stocks to Sell This Summer Earnings Season * 6 Upcoming IPOs for July The post Square Stock is Overvalued But Could Go Higher appeared first on InvestorPlace.
MasterCard (MA) Earnings Expected to Grow: Should You Buy?
Tue, 23 Jul 2019 14:32:02 +0000
MasterCard (MA) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
How Mastercard Makes Money: Financial Institution Customers Pay Volume Fees
Tue, 23 Jul 2019 02:51:37 +0000
Although most consumers think of Mastercard as a credit card company, in actuality it is a participant in the payments industry, acting as a middleman in transactions.
Facebook (FB) Q2 2019 Earnings Preview: Revenue, User Growth & More
Mon, 22 Jul 2019 22:46:10 +0000
Let's check out what to expect from Facebook's (FB) Q2 earnings results and more, including user growth.
MasterCard (MA) Outpaces Stock Market Gains: What You Should Know
Mon, 22 Jul 2019 21:45:09 +0000
MasterCard (MA) closed the most recent trading day at $278.59, moving +1.08% from the previous trading session.
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