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PayPal (PYPL) Hits 52-Week High of $62.23 on Partnerships

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Shares of PayPal Holdings, Inc. (PYPL - Free Report) hit a new 52-week high of $62.23 on Sep 1, eventually closing at $61.46. The stock has returned 65.3% in a year and approximately 55.7% year to date.

The company has a market cap of $73.9 billion. Average volume of shares traded in the last three months was roughly 8,022K.

The company’s share price jumped 4.5% following its encouraging second-quarter 2017 results on Jul 26. Shares of PayPal have gained 56.3% year to date, substantially outperforming the industry’s 17.3% rally.

Share Price Drivers

PayPal is a worldwide online payments system operator.

The company is riding high on partnerships and mobile centrism. PayPal’s ongoing strategic partnerships with Visa and MasterCard offer great flexibility and choice to consumers.

Recently, the company launched PayPal Cashback Mastercard in partnership with Synchrony Financial (SYF - Free Report) . The card offers 2% cash back on every purchase. The move expands PayPal’s ongoing relationships with Mastercard (MA - Free Report) and Synchrony Financial.

The card, designed entirely for PayPal members, offers 2% cash back on any purchase, every day, wherever Mastercard is accepted. We believe that the move is part of PayPal’s broader goal of partaking into daily financial activities of customers.

Moreover, the company’s partnerships with Facebook, Alibaba’s AliExpress and Alphabet’s Google, Intuit and other major retailers and financial institutions are also delivering positive results.

Over a year’s time, the company has put itself in a favorable position for partnerships spanning multiple original equipment manufacturers (OEM), technology companies, mobile carriers, retailers and financial institutions. To be more specific, the company has inked around 24 deals with technology and financial firms such as Visa, JPMorgan Chase and Apple (AAPL - Free Report) over the past 18 months.

The company reported strong second-quarter results, wherein both earnings and revenues exceeded the Zacks Consensus Estimate. Non-GAAP earnings of 36 cents surpassed the Zacks Consensus Estimate of 3 cents. Also, revenues of $3.14 billion were above the company’s guided range of $3.05-$3.1 billion.

The company remains optimistic about its revenue growth in 2017 and therefore has increased its expectations. The company now expects revenues between $12.78 billion and $12.88 billion compared with its earlier expectations of $12.52-$12.72 billion. The Zacks Consensus Estimate is pegged at 12.86 billion.

Additionally, PayPal delivered an average positive earnings surprise of nearly 4.21% in the trailing four quarters. The company’s comprehensive payment structure, continued innovation and strong long-term growth potential, position it well.

PayPal Holdings, Inc. Price and Consensus

 

PayPal Holdings, Inc. Price and Consensus | PayPal Holdings, Inc. Quote

Currently, PayPal carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

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