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Long Trade Idea
Enter your long position between $487.75 (an intermediate horizontal support level) and $501.66 (yesterday’s intra-day high).
Market Index Analysis
Mastercard (NYSE:MA) is a member of the S&P 100 Index and the S&P 500 Index.
Both indices push higher, recording all-time highs, driven entirely by optimism over AI hyperscaler capex following an encouraging tech earnings season.
The Bull Bear Power Indicator for the S&P 500 Index is bullish with a negative divergence.
Market Sentiment Analysis
Equity futures are slightly lower this morning after another record-setting move yesterday, as markets brace for April’s CPI report. Expectations call for a 3.7% rise, but any reaction to the release could be temporary, as markets are solely focused on AI and semiconductors, fueling parabolic increases that could extend today after earnings from Applied Materials, Cisco Systems, and Alibaba Group.
Mastercard Fundamental Analysis
Mastercard is a multinational payment card services provider. It is one of the top three credit/debit card issuers globally. It also offers data insights, cybersecurity, and fraud management services.
So, why am I bullish on MA at current levels?
Mastercard beat revenue expectations of $8.26 billion and reported $8.40 billion, while earnings per share of $4.60 were above the expected $4.41. I remain bullish due to its acquisition of BVNK for up to $1.8 billion. The blockchain infrastructure firm adds stablecoin settlement capabilities across 130+ countries, unlocking high-growth transaction volumes in B2B remittances and cross-border payments. The renewed Capital One partnership and AI-centered value-added services round up my bullish case.
Metric | Value | Verdict |
P/E Ratio | 28.83 | Bullish |
P/B Ratio | 65.16 | Bearish |
PEG Ratio | 1.58 | Bullish |
Current Ratio | 0.98 | Bearish |
ROIC-WACC Ratio | Positive | Bullish |
Mastercard Fundamental Analysis Snapshot
The price-to-earnings (P/E) ratio of 28.83 makes MA an inexpensive stock. In comparison, the P/E ratio for the S&P 500 Index is 31.91.
The average analyst price target for MA is $648.61. This suggests that there is excellent upside potential with fading downside risks.
Mastercard Technical Analysis
Today’s MA Signal
The MA D1 chart shows price action breaking out above a horizontal support zone.
It also shows price action between its descending 38.2% and 50.0% Fibonacci Retracement Fan levels.
The Bull Bear Power Indicator is bearish with an ascending trendline.
The average bearish trading volumes are higher than the average bullish trading volumes, suggesting more short-term volatility potential.
MA advanced less than the S&P 500 Index, a bearish signal, but bullish catalysts are rising.
My MA Long Stock Trade
MA Entry Level: Between $487.75 and $501.66
MA Take Profit: Between $581.31 and $589.67
MA Stop Loss: Between $456.45 and $465.59
Risk/Reward Ratio: 2.99
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