Why PayPal Holdings, Inc. (PYPL) Is An Attractive Stock Today

PayPal Holdings, Inc. (NASDAQ:PYPL) is a stock to watch today. At current price of $114.01, the shares have already added 2.51 points (2.25% higher) from its previous close of $111.5. The stock sets an active trading volume day with a reported 1913600 contracts so far this session. PYPL shares had a relatively better volume day versus average trading capacity of 6.35 million shares, but with a 1.12 billion float and a 2.23% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for PYPL stock indicates that the average analyst price target is $116.05 per share. This means the stock has a potential increase of 1.79% from where the PYPL share price has been trading recently which is between $108.31 and $111.93. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $95.

The shorts are climbing into PayPal Holdings, Inc. (PYPL) stock. The latest set of short interest data was released on 30 April 2019, and the numbers show a rise in short interest in PYPL shares. While short interest still represents only 1.26% of PYPL’s float, the number of shares shorted have risen by 263277. The number of shares shorted advanced to 14256788 shares, up from 13993511 shares during the preceding fortnight. With average daily trading volumes at 7595682 shares, days to cover decreased to about 2.065444 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Square Spends $20 to Acquire Each New Cash App User” and dated May 16, 2019.

Looking at the current readings for PayPal Holdings, Inc., the two-week RSI stands at 63.79. This figure suggests that PYPL stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current PYPL readings is similarly very revealing as it has a stochastic reading of 68.41% at this stage. This figure means that PYPL share price today is being neutral.

Technical chart claims that PayPal Holdings, Inc. (PYPL) would settle between $112.85/share to $114.2/share level. However, if the stock price goes below the $109.23 mark, then the market for PayPal Holdings, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $106.96 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 1.58. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at UBS lowered their recommendation on shares of PYPL from Buy to Neutral in their opinion released on April 17. BofA/Merrill analysts again handed out a Buy recommendation to PayPal Holdings, Inc. (NASDAQ:PYPL) stock but they lifted target price for the shares in a flash note issued to investors on March 15. The target price has been raised from $102 to $116. Analysts at Buckingham Research lowered the stock to a Neutral call from its previous Buy recommendation, in a research note that dated back to February 25.

PYPL equity has an average rating of 2, with the figure leaning towards a bullish end. 44 analysts who tracked the company were contacted by Reuters. Amongst them, 14 rated the stock as a hold while the remaining 30 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 30 analysts rated PayPal Holdings, Inc. (NASDAQ:PYPL) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, PYPL stock price is currently trading at 31.73X forward 12-month Consensus EPS estimates, and its P/S ratio is 8.24 while for the average stock in the same group, the multiple is 6.33. PayPal Holdings, Inc. current P/E ratio of 59.76 means it is trading at a premium against its industry’s 46.82. In the past 5 years, this ratio for the stock has been fluctuating between 34.31 and 48.7.

PayPal Holdings, Inc. (PYPL)’s current-quarter revenues are projected to climb by nearly 12.3% to hit $4.33 billion, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over 16.51% from $15.45 billion to a noteworthy $18 billion. At the other end of the current quarter income statement, PayPal Holdings, Inc. is expected to see its adjusted earnings surge by roughly 18.97% to hit $0.69 per share. For the fiscal year, PYPL’s earnings are projected to climb by roughly 23.14% to hit $2.98 per share.