Keith Richards
PayPal Holdings Inc.
PYPL-Q
TOP PICK
Oct 28, 2024
He called up a five year chart to look at the bigger picture pattern. He likes the cup formation with a trend down and then trending up but not aggressively. The lows and highs are getting higher. It is not overbought. There are enough fundamentals that the stock could do well. Buy 27 Hold 25 Sell 2
A year ago, the stock was very out of favour and losing market share. But they have restructured to impress the market. In recent days has taken some profits. It still has growth constraints.
Buying value in technology is often a misstep, but this one came through. Has resurrected growth in a few areas. Venmo has helped. Had a nice move, so he took his $$ off the table.
He likes this company and chart. The 4-year chart shows a base, then break out. One of the best tech charts, because it's not overdone. The company is making strides in getting its business into different venues.
It reports Tuesday. The new CEO is returning PYPL to solid growth. Once dominant, PYPL sank to the buy-now, pay-later companies, but seems to be returning.
Horrible experience owning it, and hasn't looked at fundamentals lately. Facing competition from so many angles. Good business, but not great. Valuation kind of attractive, but it's in the "too hard" pile.
We like that the financial payment company is trading at 13x earnings and supporting a 20% ROE. Cash reserves are growing, while the company aggressively buys back shares and debt is retired. We recommend setting a stop-loss at $57, looking to achieve $94 — upside potential of 32%. Yield 0%
(Analysts’ price target is $94.29)
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He called up a five year chart to look at the bigger picture pattern. He likes the cup formation with a trend down and then trending up but not aggressively. The lows and highs are getting higher. It is not overbought. There are enough fundamentals that the stock could do well.
(Analysts’ price target is $83.11)Buy 27 Hold 25 Sell 2