PayPal Holdings

PYPL
Delayed Nasdaq - 10/18 10:00:00 pm
101.22USD
-2.33%

Good timing to go long again

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David Meurisse
Contributor / Partner

Strategy published on : 09/20/2019 | 09:29

long trade
Stop-loss triggered

Entry price : 104.71$
Target : 118.7$
Stop-loss : 101.27$
Potential : 13.36%

The selling pressure regarding PayPal Holdings shares could subside shortly. In fact, the support area that is currently being tested around 101.27 USD has come into play and could, at least in the short term, keep the downside pressure at bay.
Investors have an opportunity to buy the stock and target the $ 118.7.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● In a short-term perspective, the company has interesting fundamentals.


Strengths

● The close medium term support offers good timing for purchasing the stock.

● The prospective high growth for the next fiscal years is among the main assets of the company

● The company returns high margins, thereby supporting business profitability.

● Thanks to a sound financial situation, the firm has significant leeway for investment.

● Historically, the company has been releasing figures that are above expectations.

● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.

● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.

● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.

● The tendency within the weekly time frame is positive above the technical support level at 95.69 USD


Weaknesses

● Based on current prices, the company has particularly high valuation levels.

● With an expected P/E ratio at 46.68 and 41.57 respectively for both the current and next fiscal years, the company operates with high earnings multiples.

Zonebourse.com 2019
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