PayPal Story

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PYPL -- USA Stock  

USD 201.96  1.90  0.95%

It appears without question that PayPal Holdings will continue to recover much faster as its share price surged up 0.64% today. This firm's current daily volatility is 2.75 percent, with a beta of -0.14 and an alpha of 0.3 over DOW. As many baby boomers are still indifferent towards artificial intelligence, it makes sense to summarize PayPal Holdings. We will evaluate why we are still optimistic in anticipation of a recovery.
Published 2 days ago
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Is PayPal Holdings (NASDAQ:PYPL) a good short term trade as volatility upsurges?
PayPal Holdings currently holds roughly 13.05 B in cash with 6.25 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 11.12. Macroaxis provides advice on PayPal Holdings to complement and cross-verify current analyst consensus on PayPal Holdings. Our recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
Investing in PayPal Holdings, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding PayPal Holdings along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

How important is PayPal Holdings's Liquidity

PayPal Holdings financial leverage refers to using borrowed capital as a funding source to finance PayPal Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. PayPal Holdings financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between PayPal Holdings's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for PayPal Holdings, but it might be worth checking our own buy vs. sell analysis

PayPal Holdings Correlation with Peers

Investors in PayPal can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in PayPal Holdings. Diversification will allow for the same portfolio return with reduced risk. The correlation table of PayPal Holdings and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities PayPal is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of PayPal for more details

Breaking down PayPal Holdings Indicators

PayPal Holdings appears to be very steady, given 1 month investment horizon. PayPal Holdings maintains Sharpe Ratio (i.e. Efficiency) of 0.0878, which implies the firm had 0.0878% of return per unit of risk over the last month. Our standpoint towards forecasting the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for PayPal Holdings, which you can use to evaluate future volatility of the company. Please employ PayPal Holdings Risk Adjusted Performance of 0.1093, coefficient of variation of 957.31, and Semi Deviation of 3.01 to confirm if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will PayPal continue to hike?

Expected Short fall just dropped to -2.08, may denote upcoming price decrease. PayPal Holdings shows above-average downside volatility for the selected time horizon. We advise investors to inspect PayPal Holdings further and ensure that all market timing and asset allocation strategies are consistent with the estimation of PayPal Holdings future alpha.

Our Final Perspective on PayPal Holdings

While few other entities under the credit services industry are still a bit expensive, PayPal Holdings may offer a potential longer-term growth to stakeholders. To summarize, as of the 18th of October 2020, we believe that at this point, PayPal Holdings is very steady with very small probability of financial unrest within the next 2 years. From a slightly different point of view, the entity appears to be overvalued. Our final 30 days buy-or-sell advice on the company is Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of PayPal Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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