![]() ![]() The Takeaway - The market became too bearish on PayPal Holdings, Inc., and sales and earnings revisions decreased too much. Furthermore, PayPal raised its full-year 2023 EPS growth guidance from 18% to 20%, bringing the anticipated full-year EPS number to $4.95 vs. The company's better-than-expected results materialized due to robust growth in the e-commerce industry and effective cost-cutting measures. Also, the company beat revenue estimates, growing sales by 8.3% YoY to $7.04B. PayPal delivered non-GAAP EPS of $1.17 vs. Nevertheless, the company's recent earnings came in better than expected. Like most companies today, PayPal is going through a temporary slowdown and decreased profitability phase due to external economic challenges. This phenomenon implies that investors and traders are dumping the stock, despite a possible bottom being near. The latest wave of selling appears like irrational panic selling, reminiscent of capitulation in PayPal's stock. The RSI, CCI, full stochastic, and other technical indicators illustrate that PayPal's stock is extensively oversold, likely has minimal downside, and has a high probability of recovering and moving much higher in the intermediate and long term. Most recently, PayPal dropped to a new multi-year low at about $62-63. PayPal's stock has been trading sideways and slightly lower over the last year. We see that much of the meltdown occurred during a year-long bear market from July 2021 to July 2022. From A Technical Standpoint - PayPal Is A Buy It's ridiculous, and I am using this remarkable buying opportunity to accumulate shares for the long haul. PayPal has a strong probability of continuing to increase revenues at double-digits, providing significant EPS growth and enabling its stock price to rise substantially in the coming years. ![]() Despite the company's temporary challenges, PayPal remains a high-growth candidate, and its stock price is now at a meager 11 times the consensus forward EPS estimate. Nevertheless, instead of rallying, PayPal's stock dropped like a rock to a new multi-year low after its earnings results, primarily due to a downgrade from the experts at Credit Suisse Bank. Furthermore, PayPal's recent earnings beat estimates, and the company provided solid guidance, given the challenging economic atmosphere. PayPal's fundamentals remain robust even as the company battles through the overall slowdown process. However, the drop in PayPal's stock has brought its share price down to an absurd level. ![]() Yes, PayPal was overbought and overvalued around its highs. Can you believe that PayPal's stock peaked at more than $300 in 2021 and has dropped by a whopping 80% since then? ( NASDAQ: PYPL), doubling down on the stock in my All-Weather Portfolio, bringing my average price per share paid to approximately $70. I recently increased my stake in PayPal Holdings, Inc. ![]()
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