Visa Inc (NYSE:V) and Mastercard Inc (NYSE:MA) are two stocks that may be poised for an upward move in the near future. Analyst Jim Cramer on CNBC today said he feels the stocks have been stalled for some time and that this may be about to change.
“These stocks have really been biding their time, and yet they are payment processors just like everybody else, and I just think they’re terrific stories that have been stalled. People come back to a secular growth theme, which is paper to plastic, which continues. These are very well-run companies […],” Cramer said.
Cramer discussed the impact that investors leaving other stocks, like Tesla Motors Inc (NASDAQ:TSLA)’s, might have the two credit and payment processing companies, believing they are the kind of safe stock, what he called “faux financials”, that can draw people to “hide” their money in during times when they’re unsure of where else to put it.
Cramer did admit that the continued growth of eBay Inc (NASDAQ:EBAY)’s PayPal, and the looming threat from Apple Inc. (NASDAQ:AAPL)’s new Pay mobile payment platform could have an effect on the payment processing side of both Visa Inc (NYSE:V) and Mastercard Inc (NYSE:MA)’s businesses. Regardless, he feels both Visa Inc (NYSE:V) and Mastercard Inc (NYSE:MA) have bided their time and that their stocks are poised for a move, on the back of shifting sentiment if nothing else.
That sentiment will doubtless be helped along by the three brokers who came out on Monday in support of both Visa Inc (NYSE:V) and Mastercard Inc (NYSE:MA). Sterne Agee initiated coverage on both with “buy” ratings. Piper Jaffray gave both stocks “outperform” ratings, while Bernstein assumed coverage on Visa Inc (NYSE:V) with an “outperform” rating, and initiated coverage on Mastercard Inc (NYSE:MA) with a “buy” rating.
Mastercard Inc (NYSE:MA) entered today’s trading at $75.24, down 8.93% year-to-date. Visa Inc (NYSE:V) has fared slightly better this year, down 3.36%. They entered the trading day at $214.64.
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