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Down -16.01% in 4 Weeks, Here's Why You Should You Buy the Dip in Paypal (PYPL)
ZACKSยท 2025-02-26 15:36
Core Viewpoint - Paypal (PYPL) has experienced significant selling pressure, resulting in a 16% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously expected, indicating potential for recovery [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is utilized to identify oversold stocks, with a reading below 30 typically indicating oversold conditions [2]. - PYPL's current RSI reading is 28.86, suggesting that the heavy selling may be exhausting, which could lead to a price rebound as it seeks to return to equilibrium [5]. Group 2: Fundamental Indicators - Analysts have raised earnings estimates for PYPL by 2.3% over the last 30 days, indicating a consensus among sell-side analysts that could lead to price appreciation [6]. - PYPL holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which further supports the potential for a near-term turnaround [7].