Keep an Eye Out for These NASDAQ-Listed Oversold Stocks - PYPL, PDD, MICT

PayPal Holdings, Inc.

PayPal Holdings, Inc. (NASDAQ: PYPL) is a global technology platform and digital payments firm that enables merchants and customers to make digital and mobile payments. Its proprietary payments platform comprises its core PayPal, PayPal Credit, Honey, Braintree, Venmo, Xoom, Zettle, and Hyperwallet products and services.

Key Highlights

• The company reported a 13.24% increase in net revenues to USD 6.18 billion in Q3FY21 (ended September 30, 2021) compared to USD 5.46 billion in Q3FY20.
• PYPL reported an increase in net income to USD 1.09 billion in Q3FY21 from USD 1.02 billion in Q3FY20.
• The company's ROE and net margins declined to 5.1% and 17.6% in Q3FY21 from 5.9% and 19.0% in Q2FY21, respectively.
• On October 05, 2021, Honey, a payment platform, announced the launch of PayPal cashback, a new way for US users to redeem Honey Gold reward points earned while buying online.
• The stock is currently trading below its key short-term (50-day) and long-term (200-day) DMA support levels, with the RSI Index at 23.824, indicating an oversold zone.
• It is leaning towards the lower band of the 52-week range of USD 184.28 to USD 310.16.
• Its stock price has declined 35.52% and 28.47% in the past three and six months, respectively.

Technical Price Chart (as of November 29, 2021). Analysis by Kalkine

Conclusion: Considering the consumer spending concerns, margins pressure, and technical indicators, we recommend a "Watch" rating on the stock at the current price of USD 186.00, down 0.95% as of November 29, 2021, at 12:18 PM ET.

*The reference data in this report has been partly sourced from REFINITIV.

Pinduoduo Inc.

Pinduoduo Inc. (NASDAQ: PDD) is a China-based mobile-only marketplace that connects several agricultural producers and consumers. The company's mobile platform offers a wide range of reasonably priced items and a social shopping experience that makes social media an effective and efficient strategy for acquiring and engaging customers.

Key Highlights

• The company reported a 51.34% increase in revenues to RMB 21.51 billion in Q3FY21 (ended September 30, 2021) compared to RMB 14.21 billion in Q3FY20.
• PDD reported an increase in net income to RMB 1.64 billion in Q3FY21 vs. a loss of RMB 784.71 million in Q3FY20.
• In Q3FY21, there were 741.5 million active monthly users, up 15.25% from 643.4 million in Q3FY20.
• The company's ROE and net margins declined to 2.5% and 7.6% in Q3FY21 from 3.8% and 10.5% in Q2FY21, respectively.
• The stock is currently trading below its critical short-term (50-day) and long-term (200-day) DMA support levels, with the RSI Index at 32.463, indicating an oversold zone.
• It is leaning towards the lower band of the 52-week range of USD 65.51 to USD 212.60.
• PDD stock price has declined 43.23% and 61.92% in the past six and nine months, respectively.

Technical Price Chart (as of November 29, 2021). Analysis by Kalkine

Conclusion: Considering the recent Chinese crackdown, regulatory issues, decline in profitability and technical indicators, we recommend a "Watch" rating on the stock at the current price of USD 70.80, up 3.42% as of November 29, 2021, at 10:11 AM ET.

*The reference data in this report has been partly sourced from REFINITIV.

MICT, Inc.

MICT, Inc. (NASDAQ: MICT) designs, manufactures, integrates, and markets rugged PCs, tablets, and computer-based systems and equipment for the commercial, defense, and aerospace markets in the United States, Israel, and around the world.

Key Highlights

• The company reported a significant increase in net revenues to USD 18.52 million in Q3FY21 (ended September 30, 2021) compared to USD 0.35 million in Q3FY20.
• MICT reported a decline in a net loss to USD 5.33 million in Q3FY21 from USD 14.61 million in Q3FY20.
• The company is operating at ROE and EBITDA margins of -3.5% and -31.1% in Q3FY21 vs. Industry Medians of 3.0% and 12.2%, respectively.
• MICT submitted a preliminary proxy statement on November 10, 2021, which included a proposal to increase the number of authorized shares from 250 million to 425 million. MICT is looking for accretive external acquisitions and believes that the additional authorized shares will make it easier to complete short, medium, and long term transactions.
• The stock is currently trading below its key short-term (50-day) and long-term (200-day) DMA support levels, with the RSI Index at 28.433, indicating an oversold zone.
• MICT's stock price has made a new 52 week low today.
• Its stock price has declined 49.29% and 62.06% in the past six and nine months, respectively.

Technical Price Chart (as of November 29, 2021). Analysis by Kalkine

Conclusion: Considering the macroeconomic conditions, margins pressure, and technical indicators, we recommend a "Watch" rating on the stock at the current price of USD 1.07, down 4.46% as of November 29, 2021, at 11:32 AM ET.

*The reference data in this report has been partly sourced from REFINITIV.   

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