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Earnings Season Watch List: PayPal

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IBD 50 member PayPal ( PYPL ) is expected to report earnings on Jan. 24. It's now trading 1% below the 79.49 buy point from a third-stage flat base that it cleared earlier.

[ibd-display-video id=2385970 width=50 float=left autostart=true] Be aware that jumping into a stock right as it gets ready to report means you likely won't have enough time to build a profit cushion before the release. That leaves you exposed to a sudden and perhaps sharp drop if the company doesn't deliver the type of numbers analysts were expecting. You can reduce your risk by waiting to see how the company reports and how the market reacts. Using an options strategy during earnings season is another way to put yourself in a position to profit, while minimizing the potential downside.

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In terms of top and bottom line numbers, PayPal has posted rising EPS growth in each of the last five reports. Revenue gains have also moved higher during the same period.

Analysts expect EPS growth of 23% for the quarter, and 25% growth for the full year. Estimates for the full year were recently revised higher.

PayPal has a 99 Composite Rating and earns the No. 1 rank among its peers in the Finance-Card/Payment Processing industry group. Square ( SQ ) and Fleetcor Technologies ( FLT ) are also among the group's highest-rated stocks.

Note: Dates for earnings reports are subject to change. Check the company's website for any updates.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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