Mastercard Tends To Exceed Wall Street Expectations, But Signals Are Bearish Ahead Of Q1 Earnings

Wall Street expects Mastercard Inc (NYSE:MA) to report $3.23 in earnings per share, and $6.3 billion in revenues for its first-quarter earnings report, set to be announced on Wednesday before market hours.

Mastercard has a history of exceeding Wall Street’s earnings expectations. The credit card giant is expected to have strong earnings in the first quarter of 2024.

The company is likely to continue benefiting from high transaction volumes due to rising consumer spending fueled by real wage and income growth.

Let’s look at what the charts indicate for Mastercard stock, and how the stock currently maps against Wall Street estimates.

Mastercard Stock Trend Strongly Bearish

Chart: Benzinga Pro

The share price is currently trading below its 5, 20, and 50-day exponential moving averages.

This indicates selling pressure and suggests a risk of further bearish movement.

Chart: Benzinga Pro

The stock is also trading below its eight-day simple moving average, which signals bearishness. The 20-day and 50-day simple moving averages also add to the bearish setup, trading away and above the current share price.

However, the 200-day simple moving average trading below the price, suggests some bullishness for the long term.

Chart: Benzinga Pro

The Moving Average Convergence Divergence (MACD) indicator is negative at -3.89, further supporting a bearish sentiment. The Relative Strength Index (RSI) at 36.50, is below 50, indicating oversold conditions.

The Bollinger Bands have Mastercard stock trading in the lower band for almost a month now, adding to the bearishness.

Some longer-term indicators suggest a buying opportunity as U.S. consumer spending is robust, benefiting the entire card sector.

Risks include interchange fees, competition from Visa and other payment services like PayPal Holdings, which beat Q1 revenue estimates.

Also Read: Investigating Mastercard’s Standing In Financial Services Industry Compared To Competitors

Mastercard Analysts Consensus Ratings

Ratings & Consensus Estimates: The consensus analyst rating on Mastercard stock stands at a Buy currently with a price target of $446.87.

However, the most recent analyst ratings for Mastercard, released in the month of April have their price targets in the range of $520 – $545, suggesting a decent potential upside for Mastercard stock.

MA Price Action: Mastercard stock closed Monday at $457.10, down 1.15%. The stock is up 20.33% over the past year; +7.17% year-to-date.

Read Next: Mastercard’s Latest Virtual Card App Move to Boost Contactless Payments; Analyst Eyes Substantial Growth Citing Advanced Security and Digital Innovations

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