Last Updated: 19 Sep 2024
Executive Summary
PayPal Holdings Inc. (PYPL) is a leading global online payments company with a strong financial performance and positive analyst outlook. The company's latest stock price of $73.12 is above its 50-day and 200-day moving averages, indicating a bullish trend.
Company Overview
PayPal is a payment processor that enables online and mobile payments for consumers and businesses worldwide. It operates in over 200 countries and supports over 25 currencies. The company offers a range of payment services, including digital wallets, payment gateways, and merchant solutions.
Fundamental Analysis
Revenue: PayPal's revenue has grown steadily in recent years, reaching $31.03 billion in the trailing twelve months (TTM).
Earnings: The company's diluted EPS has also increased, reaching $4.12 TTM.
Profitability: PayPal's profit margin is 14.3%, and its operating margin is 17.9%, indicating strong profitability.
Valuation: The company's trailing PE ratio of 17.75 is in line with industry peers, and its forward PE ratio of 15.08 suggests potential for further growth.
Technical Analysis
Trend: PayPal's stock price is trending upwards, as indicated by its moving averages and recent price action.
Support and Resistance: The stock has strong support at $63.13 (200-day moving average) and resistance at $74.4 (52-week high).
Momentum: The Relative Strength Index (RSI) is above 50, indicating positive momentum.
Short Term Outlook
In the short term, PayPal's stock is expected to continue its bullish trend. The company's strong fundamentals and positive analyst outlook support a further increase in stock price. The stock is likely to face resistance at $74.4, but a breakout above this level could lead to further gains.
Long Term Outlook
PayPal's long-term prospects are also positive. The company is well-positioned to benefit from the growing trend towards digital payments. Its strong brand recognition, global reach, and innovative payment solutions will continue to drive growth in the coming years.
Analyst Recommendations
Analysts are overwhelmingly positive on PayPal. Of the 46 analysts covering the stock, 23 have a "Hold" rating, 17 have a "Buy" rating, and 6 have a "Strong Buy" rating. The average analyst target price is $80.42, implying a potential upside of 9.9%.
