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WI
Wise investor
@wise_investor · Mar 6

💸PayPal $PYPL: A giant who is struggling!

I've been looking at the interesting indicators and it amazes me how low the PayPal is trading compared to the market! With the ratio P/E around 16x a PEG (Price/Earnings to Growth) approximately 0,5x suggesting undervaluation. With a price to earnings ratio of around 2,25x is PayPal a very interesting option!

🔍 Competitors include $SQ and $AFRM, even $V! Who do you think is the best?

New CEO Alex Chriss is directing PayPal towards innovation and financial efficiency. Aggressive share buyback program adds another interesting perspective! During 2024, they plan to buy back shares worth more than 5 billion dollars.

🔄 Buybacks are not just a sign of faith in undervalued stocks, but also a strategy to increase earnings per share. 📊 With earnings growth, this move can boost earnings per share and give the stock an interesting momentum finally to the upside.

🏆 BNPL (Buy Now, Pay Later) and crypto appear to be strong pillars for PayPal. With dominance in BNPL and the growing capitalization of stablecoin, it's an interesting mix!

With a return on equity of around 18 % and gross profit $11.7 billion, I thinkPayPal is on the right track. 💰 Financial health is strong, although the current market valuation seems low.

PayPal is, in my opinion, a fundamentally strong company that is currently undervalued by the market. With its diverse strategic moves and stable financial position, it is an interesting player with significant growth potential. 💡

What do you think of PayPal, which is not having a very pleasant time?
Do you have any other favourites in the Fintech space?

Părerea personală a unui membru al comunității, nu o recomandare de investiții. Regulile comunității

AG
Alfred Gray @alfredgray Mar 7

I have the same opinion as you in the post, otherwise great article!

WI
Wise investor @wise_investor Mar 7

Thanks a lot!

RR
Rickie Reeve @rickiereeve Mar 7

Let the price stay down... The buybacks might work.

MD
Monday Dayton @mondaydayton Mar 7

Nice post, I've already chimed in on this action here too and I'm glad someone else sees it similarly. I already have quite a larger position here at an average purchase of $64 ... I don't want to dilute anymore although I also like the new CEO and believe he will pick the company back up again, although it won't be a rocket but so quiet until 2-4 years. Unless they screw up something around the crypto thing, I also see an opportunity with them to differentiate themselves more.

WI
Wise investor @wise_investor Mar 7

Thanks a lot, I see it as a longer term thing too.

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