Is Paypal Stock A Good Long

The consensus among Wall Street research analysts is that investors should “buy” PayPal stock. Dan Schulman, the company’s chief executive officer, estimates that the digital payments industry will evolve into a $100 trillion market in the future. PayPal investors should be grinning ear to ear when learning this news given the company’s strong brand image and elite market positioning. PayPal’s fundamentals look awfully strong for a company that has lost over half of its value this past year. The company finished 2021 with $25.4 billion in sales and adjusted earnings per share of $4.60, translating to 18% and 19% growth year over year, respectively. The fintech leader continues to shine on the cash flow front — PayPal’s free cash flow and cash from operations grew 38% and 31% in the fourth quarter, respectively, up to $1.6 billion and $1.8 billion.

They issued an “overweight” rating and a $152.00 price objective for the company. Cowen cut their target price on shares of PayPal from $221.00 to $147.00 and set an “outperform” rating for the company in a research note on Wednesday, February 2nd. Finally, BTIG Research Forex lowered shares of PayPal from a “buy” rating to a “neutral” rating in a research note on Wednesday, February 2nd. One investment analyst has rated the stock with a sell rating, fourteen have issued a hold rating and twenty-eight have issued a buy rating to the company.

Paypal Stock Forecast, Price & News

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  • Tortoise Investment Management LLC now owns 145 shares of the credit services provider’s stock valued at $38,000 after buying an additional 80 shares in the last quarter.
  • PayPal expects revenue growth of 15% to 17% this year, with 15 to 20 million new accounts.
  • There are currently 1 sell rating, 12 hold ratings and 28 buy ratings for the stock.
  • Despite its mammoth size, the company continues to expand its reach and operations into different segments.
  • It is unusual for the consensus price target to represent so much upside for a high-quality stock like PYPL which is flowing cash with solid growth ahead of it.
  • Earnings per share of $1.11, ex-items, missed the $1.12 expected.

Over the last four quarters, the company has beaten consensus EPS estimates three times. PayPal Holdings holds several negative signals and is within a very wide and falling trend, so we believe it will still perform weakly PYPL stock price in the next couple of days or weeks. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Sell to a Strong Sell candidate.

Moodys Daily Credit Risk Score

However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. For Paypal, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company’s earnings prospects. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 or 5 . Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model’s predictive power is significant for positive ESP readings only. The earnings report, which is expected to be released on April 27, 2022, might help the stock move higher if these key numbers are better than expectations.

PYPL stock

Perfect for the technical trader—this indicator captures a stock’s technical events and converts them into short, medium, and long-term sentiment. The digital payments giant faces a lot of near-term challenges. I run Best Of Breed, a research service uncovering high conviction ideas in the winners of tomorrow.



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