PayPal Holdings
PYPL
Delayed Nasdaq - 08/17 10:00:00 pm
85.45USD
+0.15%

Helped by a technical support level

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David Meurisse
Contributor / Partner

Strategy published on : 02/09/2018 | 16:11

long trade
Stop-loss triggered

Entry price : 74.39$
Target : 84.7$
Stop-loss : 70.97$
Potential : 13.86%

The support at 70.97 USD, which is currently being tested, should allow PayPal Holdings shares to move back to the upside.
Investors have an opportunity to buy the stock and target the $ 84.7.

Summary

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

● The company has solid fundamentals for a short-term investment strategy.


Strengths

● Graphically speaking, the timing seems perfect for purchasing the stock close to the USD 70.97 support.

● Its core activity has a significant growth potential and sales are expected to surge, according to Thomson Reuters' forecast. Indeed, those may increase by 59% by 2020.

● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.

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

● 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 covering this company mostly recommend stock overweighting or purchase.

● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 61.13 USD


Weaknesses

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

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 40.97 times its estimated earnings per share for the ongoing year.

● Revenue estimates are regularly revised downwards for the current and coming years.

Zonebourse.com 2018
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