One of the top-performing payments stocks this year could be due for a pullback, Miller Tabak says

One of the top-performing payments stocks this year could be due for a pullback, Miller Tabak says

It's been a busy week for the payments stocks, with Mastercard, PayPal and Visa all reporting earnings in recent days.

Those releases have highlighted a shift in consumer spending behavior during the pandemic, with PayPal profits up 86% in the quarter while spending volumes at Visa and MasterCard both declined.

That outperformance is also reflected in their stock prices. As PayPal has soared nearly 80% this year, Mastercard and Visa are both up just 3%.

Matt Maley, chief market strategist at Miller Tabak, said PayPal could be vulnerable to weakness.

"We ... have to remember that stocks, even stocks of the best companies, can get way ahead of themselves sometimes. I mean, let's face it, look what Amazon has done over the past 20 years “” it's changed the world “” but it's had many, many big declines after it got too far," Maley told CNBC's "Trading Nation" on Thursday.

Maley said PayPal may not see as big a decline as the 90% drop Amazon suffered during the dot-com bubble collapse. However, he sees the high likelihood of a pullback in PayPal after its recent run, he said.

"You can see, if you look at its weekly RSI chart, it's getting very, very overbought, and it's