GPN - PayPal Holdings: A Strong Prospect On Investor Pessimism

2024-07-02 14:55:53 ET

Summary

• PayPal stock has dropped 10.1% since March 2024, but financial data shows revenue growth, active account stabilization, and increased payment transactions.
• Profits and cash flows have increased, with adjusted earnings per share expected to rise in the mid to high single digits for 2024.
• PayPal is undervalued compared to similar companies, with a strong net cash position, active share buybacks, and growth potential, making it a "strong buy."

In my opinion, one of the most attractive opportunities on the market right now is none other than payment processing behemoth PayPal Holdings ( PYPL ). Unfortunately, many investors don't seem to agree with me at this point in time. Since I last wrote about the company in late March of 2024, ultimately upgrading it to a "strong buy," shares of the business have pulled back. In fact, they're down a rather painful 10.1% since then, which is far removed from the 4.3% increase seen by the S&P 500 over the same window of time....

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