PayPal stock: buy or sell
Jan 16th, 2021
PayPal stock brief
- PayPal merely moved a -0.94% after hitting all-time highs on Thursday
- From the chart point view, price is drawing a scaled uptrend since September 2020 with higher tops and higher bottoms. Up to date, price made a 39.71% gain since the beginning of this rally
- Mizuho and Moffett Nathanson published neutral ratings for PayPal on Friday, with an average target of $325.00
- PayPal Holdings, Inc. operates as a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants worldwide.
Should I buy PayPal stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $PYPL stock a buy?
In the current situation of PayPal there is not any eligible buy setup. This doesn't mean $PYPL will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell PayPal stock?
How to know when is it time to sell PayPal?. Like when we have to buy shares, determining when is the best time to sell is not a fickle decision, and we must follow our own trading strategy. When selling, as well as buying, our strategies are very simple to follow but are only applicable for selling stocks in your porfolio, not for selling short PayPal stock
A guiding principle is that you should never keep a trade that leads to losses greater than those expected upon the buy. The moment to sell your stock should always be determined by the stop-loss (automatic or manual)
Is it time to sell PayPal stock?
In the current situation of PayPal there is not any eligible sell setup, so PayPal stock holders with operations in profit can keep their positions
In the last 30 days, 4 analyst ratings were published for PayPal. General sentiment is bullish, with 3 out of 4 publishing positive forecasts
|Dec 22nd, 2020|
|Deutsche Bank Aktiengesellschaft|| |
|Jan 15th, 2021|
PayPal stock analysis
PayPal shares started an uptrend in September 2020, and grew a gorgeous 39.71%. The price line shows higher peaks and higher troughs, and along the way provided some entry points for those who wanted to trade in. Latest low was on January 6, when price bounced at $225.70. Currently, the price swings in a consolidation between its last top ($249.85) and its last bottom ($225.70)
$PYPL at new Highs
On Thursday, PayPal hit all-time highs (ATH) again at $249.85
Supports and resistances
The current resistance levels are:
The current support levels are:
The price is trading very close to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a bearish indicator, as price can move in these levels for many days and weeks
Relative strength index
The RSI dropped below the overbought level of 70 in late December after just crossing to the overbough zone for 1 day (weak signal). The RSI value on Friday was 58.32. PayPal stock slightly moved a 0.15% since then
PayPal stock price history
PayPal went public on Jul 6th, 2015 priced at $38.00 per share1. Since then, PYPL stock surged by 531.03%, with an average of 106.21% per year. If you had invested $1,000USD in PayPal stock on the IPO, it would be valued $6,310.26 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for PayPal stock
How much a stock will be priced tomorrow or next week is quite unpredictable. Banks and financial organisations post their analysis predicting how a particular stock will performance in the future.
The following table shows the price predictions published by analysts for the last 30 days. Again, these targets are not direct recommendations for individual traders and must not be followed blindly.
The average price target for PayPal stock calculated from the table below is $262.50. That is a 9.47% than the current price ($239.79).
|Brokerage firm||Price target|
|Dec 22nd, 2020|
|Deutsche Bank Aktiengesellschaft||$234.00 → $275.00|
|Jan 15th, 2021|
|Mizuho||$290.00 → $350.00|
|Moffett Nathanson||$280.00 → $300.00|
Earnings and financials
PayPal Holdings, Inc. ($PYPL) posted quarterly earnings of $1.07 per share last November, uplifting the Market consensus estimate of $0.94 per share. This Q3 report means an earnings surprise of 13.83%. On the contrary, the company reported turnover for this quarter was $5.5 billion aligned with analysts' estimates.This compares to Earnings of $0.61 per share same quarter last year, so posted EPS means an increase of 75.41%. Looking at sales, figures skyrocketed a 24.69% compared to $43.8B same quarter a year ago.
PayPal ($PYPL) will host the quarterly earnings call on January 27. Wall Street expects of $0.99, compared to Q3 that was $1.07.
Disclaimer:The opinions expressed in this post are personal and should not be followed as recommendations for you to buy or sell shares. The author of this document does not have an understanding of the specific scenarios of the reader, his or her own financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are expressed for learning purposes only
|Friday, January 15th, 2021|
|Day range||$235.03 - $244.56|
|Average true range||$8.61|
|50d mov avg||$217.36|
|100d mov avg||$206.01|
|200d mov avg||$181.22|
|Earnings date||January 27th, 2021|