PayPal Holdings, Inc. (PYPL) is a digital payment company that operates globally. On April 25, 2023, the Aroon Indicator triggered a bullish signal, indicating that the stock could be setting up for a potential bullish move. The Aroon Indicator is a technical analysis tool that is used to identify the strength and direction of a trend, as well as potential changes in trend. The tool is composed of two lines: the AroonUp line and the AroonDown line. The AroonUp line measures the strength of the uptrend, while the AroonDown line measures the strength of the downtrend.
Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When this occurs, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy call options. A.I.dvisor looked at 315 similar instances where the Aroon Indicator showed a similar pattern. In 250 of the 315 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at 79%.
However, it is important to note that technical analysis tools, such as the Aroon Indicator, are not always accurate and should be used in conjunction with other forms of analysis. It is also important to consider other factors, such as fundamental analysis and market sentiment, when making investment decisions.
On May 08, PYPL reported its earnings for the quarter. The company reported earnings per share of -137 cents, beating the estimate of -157 cents. This represents a positive earnings surprise of 12.7%. The company's revenue for the quarter was $6.12 billion, beating the consensus estimate of $6.04 billion. The company also provided guidance for the upcoming quarter, with revenue expected to be in the range of $6.25 billion to $6.35 billion.
With 1.33 million shares outstanding, the current market capitalization of PYPL sits at $10.91 billion. The positive earnings surprise and strong revenue growth may provide further support for the bullish signal that was generated by the Aroon Indicator.
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where PYPL's RSI Oscillator exited the oversold zone, of 24 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PYPL advanced for three days, in of 333 cases, the price rose further within the following month. The odds of a continued upward trend are .
PYPL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Momentum Indicator moved below the 0 level on May 09, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on PYPL as a result. In of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for PYPL turned negative on May 09, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
PYPL moved below its 50-day moving average on May 09, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for PYPL crossed bearishly below the 50-day moving average on May 01, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PYPL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for PYPL entered a downward trend on May 23, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. PYPL’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.383) is normal, around the industry mean (3.866). P/E Ratio (25.510) is within average values for comparable stocks, (29.143). Projected Growth (PEG Ratio) (0.503) is also within normal values, averaging (1.404). PYPL has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.049). P/S Ratio (2.464) is also within normal values, averaging (5.572).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PYPL’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows