Payment processors continue to be a strong source of breakout ideas among top stocks in the current stock market uptrend. Top stocks to watch in the industry include IBD 50 stock PayPal (PYPL), Leaderboard stock Euronet Worldwide (EEFT) and future breakout candidate Square (SQ).
XThe Finance-Credit Card/Payment Processing industry group is ranked No. 51 out of 197 groups.
Top Stocks To Watch In The Current Stock Market
PayPal stock was the first payment processor to stage a breakout in the current stock market uptrend, kicking off the action Jan. 24 with a breakout past a 92.45 buy point. The breakout nearly failed on Jan. 31, but never fell more than 7% below the buy point. When a stock falls more than 7% to 8% below the proper entry, investors should play defense and cut losses. Instead, the stock rallied from its 50-day line and is nearing a new high. The RS line is also nearing a new high.
On Tuesday, PayPal stock closed with a less than 0.1% gain. According to IBD Stock Checkup, PayPal stock has a 96 out of a highest-possible 99 IBD Composite Rating. The Composite Rating helps investors easily gauge a stock's strengths.
PayPal now owns a stake in MercadoLibre (MELI) after the Argentina-based company announced a $1.8 billion equity offering. PayPal is facing growing competition from FANG stock Amazon.com (AMZN).
Next, Mastercard (MA) is extended beyond a 210.01 buy point in a double bottom. According to MarketSmith chart analysis, Mastercard stock broke out past the buy point on Jan. 31.
On Feb. 8, Euronet Worldwide got in on the action with a strong breakout on Feb. 8. The Leaderboard stock is extended past a 122.03 entry in a cup base.
Global Payments (GPN) is in the 5% buy zone past a 129.35 buy point in a cup base. Shares broke out on Feb. 28.
Lastly, Worldpay (WP) was the most recent breakout among the top payment stocks. Shares broke out above a 98.16 buy point in a cup with handle on Monday. Shares are just above the entry in Tuesday trade. The 5% buy zone tops out at 103.07.
In the latest quarter, earnings increased 15%, while sales dropped 1% vs. the year-ago period.
Can Square Stock Be The Next Breakout Stock?
Square stock is etching a handle onto a deep cup-shaped base. The current handle is the direct result of the company's disappointing guidance. Shares of the San Francisco-based firm rose 1.7% Tuesday and are about 7% away from the 82.88 buy point.
Square stock declined as much as 51% off its 52-week high in late December, so the cup with handle is abnormally deep.
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