Shares in PayPal Holdings show a positive technical chart pattern over the medium term, which suggests that the rising trend should be followed.
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
● Its core activity has a significant growth potential and sales are expected to surge, according to Standard & Poor's' forecast. Indeed, those may increase by 60% by 2021.
● The group's high margin levels account for strong profits.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Historically, the company has been releasing figures that are above expectations.
● For the last week, the earnings per share forecast has been revised upwards. According to recent estimates, analysts give a positive overview of the stock
● For the past twelve months, EPS forecast has been revised upwards.
● 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 95.69 USD
Weaknesses
● Stock prices approach a strong long-term resistance in weekly data at USD 120.12.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● With an expected P/E ratio at 50.81 and 45.56 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
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PayPal Holdings, Inc. is one of the main global providers of online payment services. The company enables individuals and professionals to purchase and to sell goods and services, as well as make transfers and withdrawals. Paypal Holdings operates a technology platform equipped with solutions (Paypal, PayPal Credit, Venmo and Braintree brands) designed to facilitate safeguarded payments via merchant websites, mobile payment devices, and through shops. Net sales break down by source of revenue as follows:
- revenues from transactions (90.2%);
- revenues from value-added services (9.8%).
At the end of 2023, PayPal Holdings, Inc. has 426 million active accounts.
The United States accounts for 58% of net sales.