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PayPal (PYPL) Hits 52-Week High on Partnership With Acorns
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Shares of PayPal Holdings, Inc. (PYPL - Free Report) hit a new 52-week high of $78.43 on Nov 21, eventually closing at $77.77.
The company has a market cap of $93.5 billion. Average volume of shares traded in the last three months was roughly 7,828K.
The company’s share price jumped 16% following its encouraging third-quarter 2017 results on Oct 19. Shares of PayPal have gained 97.1% year to date, substantially outperforming the industry’s 33.2% rally.
Share Price Drivers
PayPal is a worldwide online payments system operator. It is riding high on partnerships and mobile centrism.
The payment processor company recently entered into a partnership with Acorns Grow Inc., an investment startup, to offer its customers robotic trading options. The deal will allow PayPal users to invest or set up a savings account with the five-year-old automated investment startup.This will give PayPal users the option to link their funds to an Acorns investment account, allowing them to choose between one-time investment options and recurring payments.
The recent partnership with Acorns comes after PayPal struck deals with more than 20 new partners such as Facebook, Baidu, and JPMorgan Chase in the last year and a half. Also, PayPal’s ongoing strategic partnerships with Visa and MasterCard offer great flexibility and choice to consumers.
Over a year’s time, the company has placed itself in a favorable position for partnerships spanning multiple original equipment manufacturers (OEM), technology companies, mobile carriers, retailers and financial institutions.
Also, the company reported strong third-quarter results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Non-GAAP earnings of 46 cents surpassed the Zacks Consensus Estimate of 2 cents. Also, revenues of $3.24 billion came in above the company’s guided range of $3.14-$3.19 billion.
The company remains optimistic about its revenue growth in 2017 and therefore has increased its expectations. The company now expects revenues between $12.92 billion and $12.98 billion compared with its earlier expectations of $12.78-$12.88 billion. The Zacks Consensus Estimate is pegged at 12.97 billion.
Additionally, PayPal delivered an average positive earnings surprise of nearly 5.35% in the trailing four quarters. The company’s comprehensive payment structure, continued innovation and strong long-term growth potential, position it well.
PayPal currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader technology sector are NVIDIA Corporation (NVDA - Free Report) and SMART Global Holdings, Inc. (SGH - Free Report) , each carrying a Zacks Rank #1 (Strong Buy), while Applied Materials, Inc. (AMAT - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings per share growth rate for NVIDIA Corporation, SMART Global and Applied Materials is projected to be 11.2%, 15% and 16.9%, respectively.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
PayPal (PYPL) Hits 52-Week High on Partnership With Acorns
Shares of PayPal Holdings, Inc. (PYPL - Free Report) hit a new 52-week high of $78.43 on Nov 21, eventually closing at $77.77.
The company has a market cap of $93.5 billion. Average volume of shares traded in the last three months was roughly 7,828K.
The company’s share price jumped 16% following its encouraging third-quarter 2017 results on Oct 19. Shares of PayPal have gained 97.1% year to date, substantially outperforming the industry’s 33.2% rally.
Share Price Drivers
PayPal is a worldwide online payments system operator. It is riding high on partnerships and mobile centrism.
The payment processor company recently entered into a partnership with Acorns Grow Inc., an investment startup, to offer its customers robotic trading options. The deal will allow PayPal users to invest or set up a savings account with the five-year-old automated investment startup.This will give PayPal users the option to link their funds to an Acorns investment account, allowing them to choose between one-time investment options and recurring payments.
The recent partnership with Acorns comes after PayPal struck deals with more than 20 new partners such as Facebook, Baidu, and JPMorgan Chase in the last year and a half. Also, PayPal’s ongoing strategic partnerships with Visa and MasterCard offer great flexibility and choice to consumers.
Over a year’s time, the company has placed itself in a favorable position for partnerships spanning multiple original equipment manufacturers (OEM), technology companies, mobile carriers, retailers and financial institutions.
Also, the company reported strong third-quarter results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Non-GAAP earnings of 46 cents surpassed the Zacks Consensus Estimate of 2 cents. Also, revenues of $3.24 billion came in above the company’s guided range of $3.14-$3.19 billion.
The company remains optimistic about its revenue growth in 2017 and therefore has increased its expectations. The company now expects revenues between $12.92 billion and $12.98 billion compared with its earlier expectations of $12.78-$12.88 billion. The Zacks Consensus Estimate is pegged at 12.97 billion.
Additionally, PayPal delivered an average positive earnings surprise of nearly 5.35% in the trailing four quarters. The company’s comprehensive payment structure, continued innovation and strong long-term growth potential, position it well.
PayPal Holdings, Inc. Price and Consensus
PayPal Holdings, Inc. Price and Consensus | PayPal Holdings, Inc. Quote
Zacks Rank & Stocks to Consider
PayPal currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader technology sector are NVIDIA Corporation (NVDA - Free Report) and SMART Global Holdings, Inc. (SGH - Free Report) , each carrying a Zacks Rank #1 (Strong Buy), while Applied Materials, Inc. (AMAT - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings per share growth rate for NVIDIA Corporation, SMART Global and Applied Materials is projected to be 11.2%, 15% and 16.9%, respectively.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>