PayPal Bulls Stand Firm: Will Q3 Earnings Trigger A Pullback?

PayPal Holdings Inc PYPL will be reporting its third-quarter earnings on Tuesday. Wall Street expects $1.07 in EPS as the company reports before market hours.

The stock is up 63.13% over the past year, 35.50% YTD.

Let’s look at what the charts indicate for PayPal stock and how the stock currently maps against Wall Street estimates.

PayPal Stock’s Strong Bullish Trend Ahead Of Q3 Earnings 

PayPal’s stock currently shows a strong bullish trend, trading above its five-day, 20-day and 50-day exponential moving averages, signaling potential upward momentum despite signs of selling pressure that could pose a risk for future bearish movement.

Read Also: PayPal Expands Partnership With Global Payments, Fastlane Checkout To Boost E-Commerce

Chart created using Benzinga Pro

PayPal stock’s price of $83.22 remains above key short-term averages: the eight-day SMA at $81.17, the 20-day SMA at $80.23 and the 50-day SMA at $75.87. These indicators reflect consistent buying interest, suggesting that PayPal could maintain this positive trend.

Additionally, PayPal's MACD reading of 1.82 reinforces a bullish outlook, indicating ongoing upward momentum. However, the Relative Strength Index (RSI) is at 67.66, which suggests that the stock is nearing overbought levels. This elevated RSI may indicate limited headroom for further gains and could potentially lead to a pullback if buying interest wanes.

Investors should closely monitor the stock's momentum indicators as they could signal a change in direction if selling pressure increases.

PayPal Analysts See 8% Upside

Ratings & Consensus Estimates: The consensus analyst rating on PayPal stock stands at a Buy with a price target of $78.24. The three most recent analyst ratings for PayPal (Monness, Crespi, Hardt; Stephens & Co. and Wells Fargo) have an average price target of $90, implying an 8.02% upside.

PYPL Price Action: PayPal stock is up 1.9% at $83.26 at the time of publication Monday.

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