PayPal Holdings Inc

PayPal Holdings Inc (NYSE: PYPL) is a major technology platform and digital payments company. The company allows digital and mobile payments on behalf of merchants and consumers globally. PYPL’s overall payment solutions comprise its core PayPal and PayPal Credit, Braintree, Venmo, Xoom, Zettle, and Hyperwallet products and services, including its proprietary Payments Platform.

Financial and Operational Update: On 3 December 2021, the company updated that it processed the highest $188 million in donations globally this Giving Tuesday. Over 1.6 million PayPal customers spread over 193 markets donated to causes they care about, resulting in more than 2.1 million donations. Besides, on 1 December 2021, the company mentioned that the US-based Wix merchants could provide PayPal Pay in 4 and PayPal Credit to its consumers. It will be offered through a dedicated Pay Later checkout button and present Pay in 4 messaging earlier in the shopping journey. On the financial front, PYPL has delivered a robust performance across financial metrics with net revenue of $6.18 billion in Q3FY21, increasing 13% on a spot and FXN basis. GAAP EPS stood at $0.92 compared to $0.86 in Q3FY20. It generated an operating cash flow of $1.51 billion, up 15%. The company has inducted 13.3 million net new active accounts, thus ending the quarter with 416 million active accounts.

Technical Analysis

Daily Price Chart

Note: The purple colour line in the chart depicts RSI (14-period). The sky-blue and red-colour lines show 21-Period SMA and 50-Period SMA, respectively.

On the daily chart, PYPL's price has had a severe fall since achieving a double top in July 2021. Because the market is encountering significant resistance at higher levels, we can only anticipate the rising trend to continue if the price breaks out over USD 204.48 with volume. The stock's next key support level is now USD 171.63, followed by USD 152.22.

Stock Recommendation

The company forecasts achieving revenue between ~$25.3 billion to ~$25.4 billion, translating to a growth of ~18% at current spot rates and ~17% on an FXN basis. Further, it estimates attaining GAAP EPS of ~$3.62 compared to $3.54 in FY’20, and non-GAAP EPS is expected to grow ~19% to ~$4.60. Additionally, the company expects to achieve more than 430 million active accounts at the end of FY21. TPV growth is expected to stay between ~33%-34% at current spot rates and ~31%-32% on an FXN basis.

Therefore, considering the facts above and the current trading levels, we give a “Watch” recommendation on the stock at the closing market price of US$187.16, down 2.08% as of 5th January 2022.

Zomedica Corp

Zomedica Corp (NYSE: ZOM) is an animal health company and is involved in catering to clinical veterinarians' requirements in ways that promote both patient and practice health. The company aims to advance veterinary practitioners' effectiveness and financial well-being by providing professionally beneficial diagnostic products and services.

Financial and Operational Update: On October 4, 2021, the company announced the appointment of Mr. Larry Heaton as President effective October 1, 2021. Mr. Heaton adopted the role of Chief Executive Officer post the retirement of Robert Cohen from the post on October 31, 2021. Besides, on October 1, 2021, the company has declared that it had acquired the Pulse Veterinary Technologies businesses for $70.9 million in an all-cash stock transaction. Through this acquisition, ZOM expects its existing sales organization will add PulseVet’s small animal products to its product portfolio that will assist in fast-tracking the growth of the X-Trode. On the financial front, ZOM has generated revenue of $22,514 and $52,331 for the three and nine months ended September 30, 2021, respectively. It posted a net and comprehensive loss of approximately $6.3 million and $15.1 million for the three and nine months ended September 30, 2021. Compared to a net loss and total loss of around $5.0 million and $12.7 million, the three and nine months ended September 30, 2020, respectively.

Technical Analysis

Daily Price Chart

Note: The purple colour line in the chart depicts RSI (14-period). The sky-blue and red-colour lines show 21-Period SMA and 50-Period SMA, respectively.

On the daily chart, ZOM's price has been trading in a falling channel for a long time, and the RSI on the daily chart is showing divergence, therefore we may expect an up move in the stock once it breaks out over USD 0.38, backed by volumes. The stock's next key support level appears to be USD 0.26, followed by USD 0.23.

Stock Recommendation

The company will continue working with its partner, Qorvo Biotechnologies, to develop new assays for the TRUFORMA® instrument and is likely to release various new assays to market in 2022. Further, ZOM will sustain its strategy to expand its product offerings and technologies and product development efforts. Besides, the company holds cash and cash equivalents of approximately $271.4 million as of September 30, 2021.

Therefore, considering the facts above and the current trading levels, we give a “Watch” recommendation on the stock at the market price of US$0.33, down 6.29% as of January 5 2022.

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on the investors’ appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the analysis has been achieved and subject to the factors discussed above alongside support levels provided.

Technical Indicators Defined:-

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Disclaimer

The advice given by Kalkine Canada Advisory Services Inc. and provided on this website is general information only and it does not take into account your investment objectives, financial situation and the particular needs of any particular person. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. The website www.kalkine.ca is published by Kalkine Canada Advisory Services Inc. The link to our Terms & Conditions has been provided please go through them. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.