PayPal bulls stand firm: Will Q3 results trigger a decline? – PayPal Holdings (NASDAQ:PYPL)

PayPal Holdings Inc PYPL will report its third-quarter results on Tuesday. Wall Street expects EPS of $1.07, as the company reported premarket.

The stock is up 63.13% over the past year and up 35.50% year-to-date.

Let's look at what the charts show for PayPal stock and how the stock currently compares to Wall Street estimates.

PayPal stock's strong upward trend ahead of its third quarter results

PayPal stock is currently in a strong uptrend and trading above its 5-day, 20-day and 50-day exponential moving averages, pointing to a potential move despite signs of selling pressure that could pose a risk to future downside indicating upward momentum.

Also Read: PayPal Expands Partnership with Global Payments and Fastlane Checkout to Boost E-Commerce

Chart created with Benzinga Pro

At $83.22, PayPal's stock price remains above key short-term averages: the 8-day SMA at $81.17, the 20-day SMA at $80.23, and the 50-day SMA at $75.87. These indicators reflect continued buying interest and suggest that PayPal could maintain this positive trend.

Additionally, PayPal's MACD value of 1.82 reinforces a bullish outlook, suggesting continued bullish momentum. However, the Relative Strength Index (RSI) is at 67.66, suggesting the stock is approaching overbought levels. This elevated RSI potentially indicates limited room for further gains and could potentially lead to a pullback if buying interest wanes.

Investors should pay close attention to the stock's momentum indicators as they could signal a change in direction if selling pressure increases.

PayPal analysts see an increase of 8%

Reviews and Consensus Estimates: The consensus analyst rating for PayPal stock is “Buy” with a price target of $78.24. The three most recent analyst reviews for PayPal (Monness, Crespi, Hardt; Stephens & Co. and Wells Fargo) have an average price target of $90, representing an upside potential of 8.02%.

PYPL price action: At the time of publication on Monday, PayPal shares were up 1.9% at $83.26.

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