This comes just months after they gave PayPal users crypto trading privileges. Talk about moving into a very hot space. Whether you like it or not, bitcoin and other cryptocurrencies are here to stay.
And I think it’s a great move by PayPal. They are quickly becoming a big player in that landscape.
This sets up well for the stock going forward. But there’s another story going on that points to more upside. The Big Money has been crazy about the shares…for years.
You see, smart money managers are always looking to bet on the next outlier stocks…the best in class. They spend countless hours sizing up companies, reading reports, speaking to analysts…you name it. When they find a company firing on all cylinders, they pounce in a big way.
That’s why I’ve learned how critical it is to gauge Big Money demand for shares. To show you what I mean, have a look at all of the big money signals PYPL has made the last year.
Up until February, each green bar signals big trading volumes as the stock ramped in price:
Source: www.mapsignals.com, End of day data sourced by Tiingo.com
In 2021 alone, PYPL made 8 of these rare signals. Generally speaking, that means more upside is ahead.
Now, let’s check out a few technicals grabbing my attention:
- 1 year outperformance vs. market (+67.26% vs. SPY)
- 1 year outperformance vs. Financials ETF (+50.63% vs. XLF)
Outperformance is huge for leading stocks.
Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, PayPal has been growing sales and earnings at a breakneck pace. Take a look:
- 3-year revenue growth rate (+17.96%)
- 3-year earnings growth rate (+36.06%)
Those are killer growth rates. Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.
In fact, PayPal has been a top-rated stock at my research firm, MAPsignals, for years. That means the stock has buy pressure, strong technicals, and awesome fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
Since 2016, PYPL has been a constant Big Money favorite. And since its first appearance on this report, it’s up +560%!
Source: www.mapsignals.com, End of day data sourced from Tiingo.com
Let’s tie this all together.
PayPal continues to fire on all cylinders technically and fundamentally. The latest news of allowing Venmo users to transact in crypto is encouraging to their growth story. I like the long-term story of the stock.
The Bottom Line
The PayPal rally likely has further upside. Big money buying in the shares is signaling to take notice. Shares could be positioned for a bounce soon. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a growth-oriented portfolio.
Disclosure: the author holds a long position in PYPL in personal and managed accounts at the time of publication.
Learn more about the MAPsignals process here.