Digital payments giant PayPal Holdings jumped 2.7% Thursday and has a nearly 5% gain for the week amid strong, rising profit growth. Also on Thursday, the Relative Strength (RS) Rating for PayPal stock climbed to 73, up from 69 the day before.
PayPal Profit Growth Rate Climbing This Year
PayPal's earnings growth rate accelerated over the last three quarters from 19% to 20% and then 37% last quarter to $1.19 per share. Revenue growth, although not as robust as its earnings growth, has held at the high single-digit level ranging from 9% to 9% and 8% last quarter, to $7.89 billion.
The upgraded RS rating shows that PayPal tops 73% of all stocks for price performance over the past year. History shows that the stocks that go on to make the biggest gains often have an RS Rating over 80 in the early stages of their moves. See if PayPal can continue to show continued price strength and clear that threshold.
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Higher Closes As It Rises Toward Buy Point
PayPal stock has closed higher five of the last six trading sessions. It's working on a consolidation with a 70.66 buy point. During the consolidation it dropped to a 57.03 low on July 1 and then turned upward. It closed at 67.94 Thursday, up 2.7% for the day and 19% higher since that July low. See if it can break out in heavy volume.
PayPal earns the No. 9 rank among its peers in the 37-stock Finance-Card/Payment Processing industry group. Shift4, Paymentus Holdings and Kaspi.kz are among the top 5 highly rated stocks within the group.
IBD's proprietary Relative Strength Rating identifies market leadership by using a 1 (worst) to 99 (best) score that shows how a stock's price action over the last 52 weeks compares to other publicly traded companies.
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