Q2 STOCKS TO BUY

How to Profit From PayPal Stock's Pre-Earnings Dip

Could strong earnings spark another bull run for PYPL?

facebook X logo linkedin


PayPal Holdings, Inc. (NASDAQ:PYPL) is one of the biggest financial technology companies in the world. PYPL operates as a payment processor for online vendors, auction sites, and many other commercial users, for which it charges a fee. The PayPal platform supports more than 400 million consumers and merchants in more than 200 markets, serving as an electronic alternative to traditional paper methods such as checks and money orders.

PayPal is scheduled to release its third quarter earnings after the market close today. Wall Street analysts expect that the fintech company will report earnings of $1.07. Analysts have PYPL’s forward price-earnings ratio at 38.46, meaning the firm is expected to see a significant growth in earnings. It would also mean PayPal stock would be trading at a price-earnings ratio it hasn’t seen since the early days of the pandemic in spring of 2020. This quarterly report comes just a few weeks after PayPal addressed Pinterest (PIN) acquisition rumors.

PayPal stock is up 13.3% year-over-year, though it's fallen back below its year-to-date breakeven in recent sessions. Despite this, the stock looks to have found support at the $224.50 level, which captured several pullbacks earlier in the year. It's worth noting that the equity has a low 14-day relative strength index (RSI) of 15, indicating it's extremely oversold, and a short-term bounce could be on the horizon. 

pypl nov 8

From a fundamental point of view, PayPal stock continues to be an intriguing growth play, even at a market capitalization of $265 billion. The company has maintained strong and consistent growth over the past few years, increasing revenues and net income by 82% and 171%, respectively, since fiscal 2017. In addition, PayPal holds a stable balance sheet with $12.4 billion in cash and $9.7 billion in total debt.

Moreover, PayPal stock currently trades at a price-earnings ratio of 55.07, which is a rich valuation but not uncommon for the online payments giant. Overall, it is difficult to imagine PayPal stock being unsuccessful in the long-term, thus making PYPL's bearish form in recent months a great buying opportunity before the stock starts to gain momentum once again.

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter