2024-07-16 12:32:06 ET
Summary
- PayPal Holdings, Inc. stock price has remained stagnant due to EPS uncertainties.
- Despite EPS headwinds, I see improvement in revenues, earnings, and operating margins.
- Further positives including its leading market share, loyal user base, strong balance sheet, and cheap valuation ratios.
PYPL stock is not loved by the market
I last wrote about PayPal Holdings, Inc. (PYPL) a bit more than 3 months ago (on April 9, 2024). As illustrated by the screenshot below, that article was titled “ A Good GARP Stock Made Even Better By Buybacks .” As the title suggests, I rated PYPL as a BUY based on the consideration of PEG (P/E growth ratio) and aggressive share buybacks. More specifically, I argued that:
PayPal Holdings, Inc. stock prices have remained stagnant recently, but its earnings have been improving, with projected growth in the next few years. At ~13x P/E, it is simply a good GARP opportunity (growth at reasonable price) considering its scale, differentiating business model, and growth potential. The company's aggressive share buybacks further enhance the opportunity.
Read the full article on Seeking Alpha
For further details see:
PayPal May Have Turned A Corner