120.35 +0.13 (0.11%)
After hours: 7:55PM EDT
|Bid||119.52 x 1800|
|Ask||120.30 x 800|
|Day's Range||118.70 - 120.27|
|52 Week Range||74.66 - 121.48|
|Beta (3Y Monthly)||0.86|
|PE Ratio (TTM)||65.02|
|Earnings Date||Jul 24, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||122.43|
Embattled industrial giant Boeing takes center stage Wednesday morning, while social media company Facebook and electric automaker Tesla grab investors' attention after the closing bell.
The best tech stocks aren't hard to find, as long as you're targeting stocks with healthy fundamentals and bullish charts.
PayPal (PYPL) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.
Digital payments platform PayPal (NASDAQ:PYPL) is set to report second quarter numbers on Wednesday, July 24. There's reason to believe that those numbers will be very good and that PYPL stock will rally after the print.Source: Shutterstock For starter's, PayPal has a knack for beating earnings estimates. On top of that, analysts have been upgrading the stock ahead of this report, while Q2 EPS estimates have been trending higher over the past several weeks. eBay (NASDAQ:EBAY) also just reported strong Q2 numbers, confirming that global e-retail trends remain favorable. E-commerce sales data out of the U.S., U.K., E.U. and Canada over the past several months has been similarly favorable. Further, PayPal told investors a few weeks ago that its investment in Latin American e-commerce giant MercadoLibre (NASDAQ:MELI) would result in a big earnings boost this quarter.Broadly, then, it is clear that PayPal is on the verge of reporting blowout Q2 numbers. The big question: Will PYPL stock rally in response?InvestorPlace - Stock Market News, Stock Advice & Trading TipsProbably. The valuation on PayPal stock is stretched here and now. But, this is warranted by strong fundamentals and low rates. So long as rates remain low and PayPal's numbers remain good, PYPL stock should grind higher. * 7 Stocks Top Investors Are Buying Now As such, PYPL stock does look positioned for a nice beat-and-rally this earnings season. Signs of Strong PayPal Earnings ReportMultiple data points suggest that PayPal is set to report very strong Q2 earnings on Wednesday. Those data points include: * PayPal earnings always tops Street estimates. Over the past three years (12 quarters), PayPal has never missed quarterly Street EPS estimates, and has only missed revenue estimates once. That revenue miss was by a fraction of a percent. * Analysts have been upgrading PYPL stock ahead of Q2 earnings. Over the past month, a flurry of Wall Street analysts have upgraded PYPL stock, as Wall Street is increasingly optimistic that Q2 earnings will be very good and provide a nice upside lift for the stock. * EPS estimates for this quarter have been trending higher. Three months ago, EPS estimates for this quarter were around 69 cents. A week ago, they were at 71 cents. Today, the EPS estimate sits at 74 cents. This trend up further implies that analysts think this quarter could be really good. * eBay reported strong Q2 numbers. eBay just reported strong Q2 numbers that included above-consensus revenue, volume, and engagement growth, and a boosted full-year profit outlook. These numbers broadly confirm that global e-retail trends remain vigorous. * U.S. e-retail sales growth accelerated in Q2. This indicator accelerated in Q2 to 11.9%, from 11.2% in the first quarter. * EU and Canada e-retail sales growth trends were healthy in Q2. EU e-retail sales growth accelerated from 8.8% in January 2019, to 10.9% in May 2019. Canada e-retail sales growth accelerated from 17.5% at the beginning of 2019, to 21.8% in May. * Earnings will get a huge boost from MercadoLibre. PayPal announced in early July that its Q2 earnings will get a $0.14 per share boost from the company's investment in MercadoLibre. (MercadoLibre's stock price has more than doubled this year.) PayPal Stock Could Rally in ResponseTo be sure, PayPal stock has rallied in a big way ahead of what is widely expected to be a blowout Q2 earnings report. Specifically, PYPL stock is up more than 40% year-to-date, trades at all-time highs, and sports a multi-year high valuation at 40-times forward earnings. This perhaps overly bullish backdrop should give investors pause.But, it won't stop PYPL stock from rallying after Q2 earnings. * 10 Tech Stocks That Are Still Worth Your Time (And Money) The premium valuation and recent rally in PYPL stock are justified by two things. On one end, PayPal is supported by increasingly favorable fundamentals. Consumers globally continue to pivot with increasing momentum to the digital channel, and as they do, they are increasingly adopting digital payment methods like PayPal. So long as the global consumer and e-retail backdrops remain favorable, PayPal stock should continue to move higher.On the other end, interest rates in the U.S. have plunged in 2019, and this low rate backdrop supports a relatively extended valuation in PYPL stock.As such, so long as the numbers remain good and rates remain low, PYPL stock should charge higher. Bottom Line on PYPL StockPayPal's second quarter earnings report should be very good, and while the valuation on PYPL stock is relatively extended ahead of that report, the stock should still be able to rally in response because the fundamentals warrant such a rally.As of this writing, Luke Lango was long PYPL and EBAY. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Defense Stocks to Buy to Fortify Your Portfolio * 10 High-Flying, Overvalued Stocks in Danger of Crashing * 8 Stocks to Buy That Are Growing Faster Than Amazon The post Why PayPal Stock Could Have a Strong Earnings Season appeared first on InvestorPlace.
Equities got off to a sluggish start in the stock market today. While the S&P 500 and Dow Jones didn't put up robust gains, climbing just 0.23% and 0.06% respectively, it was a decent showing compared to Friday's late-day selloff. The Nasdaq did much better, climbing 0.71% as investors regain some confidence ahead of a key week for earnings. Earnings on the MoveMicrosoft (NASDAQ:MSFT) put up good numbers last week, but a whole slew of mega-cap tech will report this week.That includes Facebook (NASDAQ:FB), Tesla (NASDAQ:TSLA) and PayPal (NASDAQ:PYPL) on Wednesday. It also includes Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), Intel (NASDAQ:INTC) and Starbucks (NASDAQ:SBUX) on Thursday.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTwitter (NYSE:TWTR), Snap (NYSE:SNAP) and other tech plays will also report this week as well. * 7 Defense Stocks to Buy to Fortify Your Portfolio As far as earnings go on Monday, shares of Halliburton (NYSE:HAL) were surging, up almost 10% on the day. The company delivered a non-GAAP earnings beat, generating 35 cents per share vs. expectations of 30 cents per share. However, revenue of $5.93 billion declined 3.6% year-over-year and missed estimates by $40 million.Obviously investors are willing to overlook the sales miss, as shares of Halliburton threaten to breakout over $24. However, it may be due to management's commentary that the second half is looking better for its international unit, much like Schlumberger (NYSE:SLB) said on Friday.At the end of the day, look for earnings to fuel the move this week. It's not just tech, but the sector plays a huge role over the next few sessions. Positive reactions very well could drive stocks to new highs. A negative reaction could further the current pullback. Major Moves on the Stock Market TodayShares of memory and memory equipment makers got a huge shot in the arm on Monday. Last week, we pointed out that Micron (NASDAQ:MU) was breaking out and on Monday the stock erased any doubt about its intentions to race higher.The stock climbed 3.67%, while Lam Research (NASDAQ:LRCX) and Applied Materials (NASDAQ:AMAT) jumped 4.4% and 6.1%, respectively. Goldman Sachs analysts were the catalyst, as the firm upgraded all three of the stocks to a "buy" rating from "neutral." For AMAT, they added it to their conviction buy list.The move came with a $56 price target for Micron (from $40) and a $231 target for LRCX (from $197). For the conviction buy, the analysts assigned a $56 price target for AMAT (up from $48).Boeing (NYSE:BA) continues to hold above the key $360 to $362 area, but shares slipped 1% on Monday. The decline comes as credit rating agency Fitch cut its outlook on Boeing to "negative." That's down from a "stable" rating as Fitch worries about regulatory issues and when the 737 MAX will come into service. It could remain an issue into 2020 and hurt operating margins for several years, the firm argued. Poking Around Wall StreetBlackstone (NYSE:BX) pulled back nicely ahead of earnings last week. However, despite a solid report, the stock was relatively muted. On Monday though, BX stock jumped 4.85% on news that it may sell its stake in Cheniere Energy Partners (NYSE:CQP).In 2012, Blackstone invested $1.5 billion in the asset and is now looking to get a premium for the 203.4 million shares it owns. That stake is currently valued at $8.8 billion as of Monday's trading price. The report sent shares of Blackstone to new 52-week highs.Both Sprint (NYSE:S) and T-Mobile (NASDAQ:TMUS) finished higher on the day, but fell considerably based on where they traded throughout the morning. Investors were optimistic on the merger between the two, after a weekend report said it's all but squared away with the Department of Justice. AT&T (NYSE:T) and Verizon (NYSE:VZ) both took it on the chin Monday, down about 2%, on the news. * 5 Top Stock Trades for Tuesday: ACB, BYND, MU While the deal still seems imminent, S and TMUS stocks tumbled from their highs on a report that they may be renegotiating the merger price. The hope is that it won't drag out too much longer, with Dish Networks (NASDAQ:DISH) there to buy the divested assets.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AMZN, GOOGL and T. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Defense Stocks to Buy to Fortify Your Portfolio * 10 High-Flying, Overvalued Stocks in Danger of Crashing * 8 Stocks to Buy That Are Growing Faster Than Amazon The post Stock Market Today: A Trio of Buys; Tech Ramps Ahead of Earnings appeared first on InvestorPlace.
PayPal (PYPL) is up an impressive 42.5% YTD, continuing a very strong growth trend since the company's spin-off from eBay (EBAY). Here's what investors should expect from PYPL's Q2 earnings report.
Square stock once had a great run. But now the controversial fintech is down on its luck. And Wall Street analysts are divided on it. Here's what could make Square stock a buy again.
American Express (AXP) Q2 results benefit from higher spending, fees and loans spread across geographies and customer segments.
Bernstein analyst Harshita Rawat expects that PayPal Holdings Inc. will report "one of the messiest quarters" in recent memory "given many moving pieces around volume growth, Venmo monetization, pricing actions, credit divestiture impact, [foreign exchange], gains on investments, recent M&A & eBay ." Still, she expects that the company will top expectations, though the current consensus forecast doesn't account for recent disclosures around investment benefits. PayPal said recently that it expects 13 cents of earnings impact beyond what it previously forecast related to its investments. The FactSet consensus models 69 cents in June-quarter adjusted earnings per share, while Rawat forecasts 84 cents. She rates the stock at market perform but raised her target price to $110 from $105. PayPal shares are up 0.4% in Monday morning trading, and they've risen 42% so far this year as the S&P 500 has climbed 19%.
It's rare to find bipartisanship in today's polarized environment in Washington DC. But there is one issue that seems to unite the factions: the distrust of Facebook (NASDAQ:FB), and that's not good news for Facebook stock.Source: Shutterstock That's ironic. Keep in mind that FB continues to be quite popular with its users. The company has also been aggressive when it comes to hiring and providing juicy salaries. In the first quarter, its headcount grew by 36% on a year-over-year basis to 37,773. * 10 Tech Stocks That Are Still Worth Your Time (And Money) But such things don't really matter much. Over the years, FB has been careless with users' data and privacy. And this has impacted views on FB within DC. After all, the company recently agreed to a $5 billion settlement with the Federal Trade Commission regarding its privacy practices.InvestorPlace - Stock Market News, Stock Advice & Trading TipsYet this week's testimony regarding FB's planned launch of the Libra cryptocurrency -- which has the backing of Visa (NYSE:V), MasterCard (NYSE:MA) and PayPal (NASDAQ:PYPL) -- is perhaps the most interesting evidence of the distrust towards FB from Washington.Here's what Democrat Congressman,Brad Sherman had to say: "The most innovative thing that happened this century is when Osama bin Laden came up with the innovative idea of flying two airplanes into towers. That's the most consequential innovation, although this may do more to endanger America than even that."Yikes! Oh, and he referred to CEO Mark Zuckerberg as "Zuckbucks."In the meantime, there was criticism from the other side of the aisle. For example, Federal Reserve Chairman Jerome Powell, Treasury Secretary Steven Mnuchin and President Trump have expressed concerns about Libra. FB Stock and LibraDavid Marcus, who heads up the Libra project for FB, tried his best to handle the questions. He was actually fairly reasonable and understanding. Keep in mind that Marcus said that the cryptocurrency would not be a vehicle for trading or for banking services. He added that it would also have a great deal of transparency, helping to reduce its use in illicit activities.According to InvestorPlace.com columnist Dana Blankenhorn: "The difference is that, while banks today have to police compliance at the teller's window, so to speak, Libra will make its blockchain available to police. Facebook will control neither the network, the currency, nor the reserve backing it. Its Calibra subsidiary will just be running digital wallets."Marcus also mentioned that FB would not move forward with Libra until regulators are satisfied with it. In other words, he did demonstrate some finesse.It's difficult to predict what may ultimately happen to Libra. But given the pushback in Congress, I think the future of Libra does look dicey. Interestingly enough, the value of bitcoin has plunged recently, going from $13,000 to $9,800. The decline indicates that investors are skeptical about Libra's future. The Bottom Line on Facebook StockThe success or failure of Libra probably does not mean a lot to FB and FB stock. Rather, the hearings point to the ominous fact that FB does face serious political headwinds.FB's current problems with Washington look similar to those of Microsoft (NASDAQ:MSFT) back in the 1990s, when the company came under pressure from antitrust regulators. In fact, the parallels are eerie. Both Bill Gates and Zuckerberg started their technology companies while at Harvard and subsequently cashed in on huge opportunities. Essentially, they ruthlessly created extremely powerful platforms and ecosystems which would be nearly impossible to destroy.MSFT become an easy target. There were many companies that wanted to take it down to even the tech playing field. As a result, MSFT had to focus more and more time and resources on battling regulators. This ultimately led to the company losing its momentum and dominance, until the past couple years.I could easily envision FB suffering a similar fate. The company has become a convenient punching bag - and for good reason.I'm not implying that things will suddenly come undone for FB. For the most part, the company appears to be running on all cylinders. But in the years to come, it would not be surprising to see FB face more problems, making it tougher to be bullish about the long-term outlook of FB stock.Tom Taulli is the author of the upcoming book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post Facebook Stock Looks Poised to Face Tough Regulatory Headwinds appeared first on InvestorPlace.