Visa (V  ) and Mastercard (MA  ) stocks were trading higher after their fourth quarter earnings report as both companies exceeded analysts' expectations. Both companies' strong results are an indication that consumer spending has yet to slow down despite the myriad headwinds faced by the economy and warnings from analysts and corporations.

Additionally, both stocks are up by about 35% from their October lows and are less than 10% away from their all-time highs. Given their bullish price action and strong earnings reports, it's increasingly likely that these stocks will once again be one of the leading stocks in the next bull market especially as digital payments continue to take larger market share. And in this segment, Visa and Mastercard have a dominant, combined market share. Additionally, they have no credit risk since they are payment processors which means less downside in the event of a recession.

A particular source of strength for Visa and Mastercard is that there continues to be a strong tailwind from travel-related spending from consumers which is sufficient to offset the headwinds from inflation and rising recession risk.

Mastercard saw its total payment volume increase by 14% but cross-border volumes increased by 51%. For the quarter, the company saw a 13% increase in earnings and an overall 12% bump in revenue. Both figures were better than analysts' consensus expectations which were looking for a 9% earnings growth and an 11% increase in revenue.

For Mastercard, it was the seventh straight quarter of earnings growth, although it continues to slow from the high-water market which followed the economy's reopening.

Visa also experienced similar results as it saw its earnings rise 21%, while revenue increased by 12%. Both figures also exceeded expectations which correlated to an 11% increase in earnings and a 9% jump in revenue.

In total, Visa saw its payments volume increase by 10%, while the number of transactions rose by 12%. Cross-border volumes also had a major increase of 36% due to increasing levels of international travel.

The results of both companies are an indication that consumer spending continues to increase, although these gains are slowing. However, it's possible given that early indications are showing a re-acceleration in growth in Q4 that these trends could continue. And on a more macro basis, it's clear that the company is also still experiencing secular growth as digital payments continue to take a larger share of overall spending.