Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 29 Aug, 24 | PYPL | Buy | USD 72.42 | USD 80.6 | USD 88.75 | 29 days | 22.5% |
Data Powered by EOD Historical Data (“EODHD”).
PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards. The company provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names. The company was founded in 1998 and is headquartered in San Jose, California.
Lower Credit Risk Exposure: Debt-Equity of 0.53x in Q1 FY24 vs Industry Median of 0.85x
Increased Shareholders' Wealth: ROE of 4.3% in Q1 FY24 vs Industry Median of 3.4%
Short-Term Profitability: Gross Margin of 39.1% in Q1 FY24 vs Industry Median of 56.2%
Lower Liquidity: Current Ratio of 1.28x in Q1 FY24 vs Industry Median of 1.37x
Regulatory and Compliance Risks, Cybersecurity and Fraud Risks, Intense Competition, Integration Challenges, Technology and Platform Dependence, etc
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 72.42 | 60.5 | 80.6 | 88.75 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
PayPal's stock price has demonstrated remarkable strength by holding its ground at critical levels and initiating an upward move. The stock has now broken above a key falling trendline resistance zone, suggesting a potential further uptrend. The 14-period Relative Strength Index (RSI) is also trending upward and remains in positive territory, adding to the bullish momentum. Additionally, PayPal's stock price is now trading above both its 21-day and 50-day simple moving averages, further solidifying the optimistic outlook for the stock.
As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Buy’ rating has been given to PayPal Holdings, Inc. (NASDAQ: PYPL) its current market price of USD 72.42 as of Aug 29, 2024 (7:40 am PDT).
Data Powered by EOD Historical Data (“EODHD”).
Sector: Financial Services Industry: Credit Services
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| PYPL PayPal Holdings Inc |
-0.86 0.99% | 86.27 | 15.53 | 12.61 | 2.28 | 3.23 | 2.14 | 9.31 |
| V Visa Inc. Class A |
-2.615 0.82% | 315.10 | 31.25 | 25.97 | 16.18 | 13.64 | 16.19 | 23.37 |
| MA Mastercard Inc |
-3.86 0.73% | 524.17 | 37.04 | 29.50 | 16.14 | 62.35 | 16.47 | 27.24 |
| AXP American Express Company |
-1.555 0.52% | 297.10 | 21.83 | 20.04 | 3.53 | 7.21 | 4.18 | |
| COF Capital One Financial Corporation |
-0.84 0.47% | 177.81 | 9.72 | 9.87 | 1.85 | 0.91 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2023 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
