PayPal and Square are rallying again Wednesday, a day after getting upgrades.
The larger payment stock PayPal was upgraded by Bernstein on Tuesday to outperform on the expectation of positive revisions this year. Square got a boost from Bank of America to buy, citing an attractive entry point after underperformance in 2019.
Only one looks like the best bet on the payments space this year, according to two technical analysts.
"In terms of PayPal and Square, PayPal is really the standout here," Ari Wald, head of technical analysis at Oppenheimer, said on CNBC's "Trading Nation" on Tuesday. "The December rally above $108 — that completed the reversal in trend. We are buyers of the stock with a stop placed at $108."
"In terms of upside, I think the stock rallies back to where it started to break down in July at around $119. It looks good," said Wald.
PayPal was trading around $112 on Wednesday.Â
Quint Tatro, president of Joule Financial, agrees that PayPal is the name to watch.
"PayPal is the winner," Tatro said during the same segment. "Fundamentally speaking, the stock is trading 30 times forward earnings, but set to grow those earnings. ... In addition, the balance sheet is better. And we think that the adoption of the Venmo payment system is really moving beyond just the younger generation."
PayPal has risen 3.5% this month, while Square is up 7%.
Disclosure: Joule Financial is long PayPal.
