PayPal Holdings
PYPL
Delayed Nasdaq - 02/21 10:00:01 pm
76.51USD
-0.71%

Helped by a technical support level

Envoyer par e-mail
David Meurisse
Contributor / Partner

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

long trade
Live

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.
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
Envoyer par e-mail