PayPal Holdings Inc. (PYPL:NSD) Analysts are Bullish with a Strong Buy rating

STA Research
by: STA Research
PayPal Holdings Inc.

Based on the PYPL stock forecast from 33 analysts, the average analyst PYPL stock price target is USD 115.95 over the next 12 months. PayPal Holdings Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of PYPL stock forecast is Neutral, which is based on 5 positive signals and 6 negative signals. At the last closing, PYPL stock price was USD 102.08PYPL stock price has changed by +7.60% over the past week, +28.17% over the past month and -62.35% over the last year.

PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names. The company’s payments platform allows consumers to send and receive payments in approximately 200 markets and in approximately 100 currencies, withdraw funds to their bank accounts in 56 currencies, and hold balances in their PayPal accounts in 25 currencies. PayPal Holdings, Inc. was founded in 1998 and is headquartered in San Jose, California.

 

What we like:

High market capitalization:

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns:

PYPL stock price has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Superior capital utilization:

PayPal stock history shows that the company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow:

PYPL stock forecast shows that the company had positive total cash flow in the most recent four quarters.

Positive free cash flow:

PYPL stock forecast shows that the  company had positive total free cash flow in the most recent four quarters.

 

What we don’t like:

Overpriced compared to earnings:

PYPL stock price target is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value:

PYPL stock price target is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis:

PYPL stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Poor return on equity:

PayPal stock history shows that the company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor return on assets:

PayPal stock history shows that the company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Overpriced on free cash flow basis:

PYPL stock price target is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Disclaimer

Stock Target Advisor is not a broker/dealer, investment advisor, or platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information, and education to help investors with their research. No content on our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter into any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis.

Leave a Reply

Your email address will not be published.