PreMarket Prep Plus: Sean Udall Shares 2 Buy-The-Dip Opportunities In Payments Sector

PreMarket Prep Plus: Sean Udall Shares 2 Buy-The-Dip Opportunities In Payments Sector

Many investors are looking to add a few beaten-down growth stocks in the technology sector to their portfolios. 

Sean Udall, the tech stock strategist and the publisher of The Udall Report, shared a pair of stocks with PreMarket Prep to put on the watchlist.

Paypal Holdings Inc PYPL: The issue peaked in July at $310.16 and made a new low for the move in Friday’s session at $121.40 and has rebounded back to the $125 level as of 2 p.m. EST.

Udall has been eyeballing the issue closely since $180, figured it may get to $150, and here it is in the mid-$125 handle. 

His thesis is simple. After a poor fourth quarter and lower guidance, Udall said the company has set a really low bar for itself for the first quarter and for the remainder of 2022.

"They provided really low guidance that will enable them to beat for three quarters in a row," he said. 

Block Inc SQ: For pattern traders, this issue has a potential double bottom in place. In Thursday’s session, the issue bottomed at $100.04, and in Friday’s session it bottomed just below that level at $99.81. 

As of 2 p.m. EST it has posted a solid rebound to the $108 area.

Udall had been a former investor at the $40 area back in March meltdown in 2020. 

“Many investors believe that there is something wrong with PayPal and that competriors are coming after them, and Block Inc, is one of them,” Udall said.

"Everyone is worried about the growth really slowing down for the company. I do not." 

His dream price in Block stock is $85, but Udall does not think it will get that low. 

In fact, he said the $100-$105 area is attractive. Udall would like to see some of the payment companies produce some really poor numbers and take Block along for the ride lower. 

As a result, you may have a similar scenario to what occurred this week with Meta Platforms Inc FB, did to Snap Inc SNAP and Pinterest Inc PINS, he said. 

The full discussion with Udall from Friday’s PreMarket Prep Plus interview can be found here:  The segment with the aforementioned issues begins at the 13:45 mark.

Photo courtesy of Block.

Posted In: PreMarket PrepSean UdallTechnicalsTechTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.