PayPal continues to grow at healthy rates, and profitability is starting to improve. It's facing competition from young companies and established rivals.
PayPal remains one of my highest-conviction stocks to buy and hold for years to come.
The Zacks Internet software industry participants like PayPal (PYPL), Aspen Technology (AZPN) and Box (BOX) are benefiting from high demand for SaaS due to the increasing need for remote working, learning, and diagnosis software, as well as cybersecurity applications.
Bill Holdings is still reporting double-digit percentage growth. Management is focusing on cutting expenses and improving the bottom line.
PayPal's new CEO, Alex Chriss, focuses on SMBs with innovations like Fastlane and an ad platform, boosting merchant conversion rates and customer retention. Fastlane offers a seamless checkout experience, significantly increasing guest conversion rates from 40%-50% to around 80%, benefiting both customers and merchants. PayPal's ecosystem expansion includes partnerships with Meta, Salesforce, Adobe, and BigCommerce, enhancing its presence and potential in digital payments and advertising.
PayPal's stock, currently at $69.35, offers an attractive investment opportunity following strong Q2 results and bullish price action, indicating market recognition of its value. The stock has established a strong uptrend, closing above its 200-day SMA for 30 days, confirming the value thesis and signaling a potentially opportune time to invest. The upward momentum is justified by the company's cheap valuation relative to the market as a whole and to its own past.
Paypal (PYPL) concluded the recent trading session at $70.36, signifying a +1.46% move from its prior day's close.
PayPal rides on its expanding services portfolio, solid cryptocurrency positioning and a strong partner base.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
A long-term, buy-and-hold approach to investing is a simple and dependable way to achieve long-term returns. SoFi, PayPal, and Block are three financial technology companies looking to build on their strong growth.
PayPal's prices movements sine Q2 2024 earnings report show sign of breaking out of a long consolidation pattern. The potential of a valuation expansion, combined with the improved operations metrics reported in Q2, can support more upside. In particular, PayPal's free cash flow and owner's earnings significantly exceed its accounting EPS.
PayPal's robust financial performance, improved guidance, and strategic partnerships support a 'Strong buy' rating with an 83% upside potential. Key partnerships with Shopify, Fiserv, and Adyen, along with new features like Fastlane and Venmo's ENS integration, enhance PayPal's growth prospects. Valuation analysis via DCF and P/E ratios indicates PYPL is undervalued, with a fair share price estimate of $126.