Visa (V) and Mastercard Report 4% Rise in U.S. Holiday Spending

American consumers are continuing to spend this holiday season.

Data from credit card giants Visa (V) and Mastercard (MA) show that U.S. retail sales have increased by about 4% this holiday season, which runs from Thanksgiving at the end of November to Christmas on Dec. 25 and through to New Year’s Day Jan. 1.

Visa has reported that total U.S. retail spending, excluding automobiles and dining out at restaurants, rose 4.2% between Nov. 1 and Dec. 21. That’s slightly below Visa’s forecast that called for 4.6% growth for the two‑month holiday period.

Mastercard, which included sales at restaurants in its data, said retail sales have climbed 3.9% year‑over‑year during the time period. Mastercard had forecast a 3.6% year-over-year retail sales increase during the current Christmas season.

Taking Advantage of Sales

The credit card companies say that American consumers are balancing tighter budgets this year with a desire to upgrade gadgets and refresh wardrobes. While shoppers are being more deliberate with their purchases, they’re also hunting for deals and taking advantage of sales, according to Visa.

Retailers began rolling out their holiday sales promotions earlier than ever this year as they sought to attract price-conscious consumers with long lead times. Data drawn from billions of transactions across Visa and Mastercard’s payment networks show that sales during Cyber Week tied to Thanksgiving at the end of November were strong, and that strength has carried into December.

Sales of electronics like TVs and smartphones have led all spending categories this December, rising 5.8%, according to Visa’s data.

Is V Stock a Buy?

Visa’s stock has a consensus Strong Buy rating among 25 Wall Street analysts. That rating is based on 23 Buy and two Hold recommendations issued in the last three months. The average V price target of $403.24 implies 14.10% upside from current levels.

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