Sign InSummary
On June 20, 2023, PayPal's stock closed at $68.89 with a market capitalization of $76.86 billion, showing a 3.70% increase and a high trading volume of 31.31 million shares, possibly indicating a short-term positive influence on the stock according to technical indicators and recent news of favorable market sentiment, with the potential to reach $69-$70 in the short term and with caution advised due to the high RSI level and an earnings announcement coming up.
Introduction
PayPal Holdings, Inc. (NASDAQ: PYPL) is a global financial technology company that offers online payment processing services through its platform. As of June 20, 2023, the stock closed at $68.89 with a market capitalization of $76.86 billion.
Technical Analysis
On June 20, 2023, PYPL closed 3.70% higher at $68.89, with a daily trading range between $66.79 and $69.2. This increase is accompanied by a high trading volume of 31.31 million shares, compared to the average trading volume of 15.94 million. The stock's RSI14 is currently at 82, indicating that it might be overbought. The 50-day moving average is $67.98, and the 200-day moving average is $77.33. The MACD (3-month) is -0.01, which could signify a potential trend reversal.
Fundamental Analysis
PayPal Holdings has an EPS of $2.38 and a P/E ratio of 28.95. With 1.12 billion shares outstanding, the company's earnings announcement is scheduled for July 31, 2023. The discounted cash flow (DCF) value for PYPL is $75.61, suggesting that the stock is undervalued. The analyst consensus' target price for the stock is $130.46, with a target low of $72 and a target high of $290.
Recent News Impact
Various news reports have highlighted PayPal's recent developments. The company has finalized a deal with KKR for the sale of its "Buy Now, Pay Later" European loans, which could reap up to $43.71 billion. Additionally, the stock has been featured in articles that outline its position as a low-risk, high-reward investment and a resilient blue-chip stock with strong growth potential.
Outlook and Predictions
Based on technical indicators and recent news, PYPL's stock price is expected to be positively influenced in the short term. For the next trading day on June 21, 2023, the stock price may continue to rise, potentially reaching the $69-$70 range due to the deal with KKR and favorable market sentiment.
In the upcoming week, the stock price may further increase towards the 50-day moving average of $67.98 but may face resistance near the 200-day moving average of $77.33. With the earnings announcement approaching, investors could see increased volatility in the stock prices.
Final Evaluation
Considering PayPal's current technical and fundamental factors, the stock can be classified as a Buy. The recent deal with KKR, discounted cash flow valuation, and positive market sentiment provide potential for upside movement in the short term. However, investors should exercise caution due to the high RSI level and the approaching earnings announcement.
