PYPL Stock: A Solid Investment with Near-Term Upside Potential Despite High Valuation

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PAYPAL ($NASDAQ:PYPL): PayPal Holdings (PYPL) is an American company that runs a global payments system which supports online money transfers and serves as an electronic alternative to traditional paper methods like checks and money orders. As a consequence, the demand and potential of PYPL stock is increasing, making it a viable option for investors. If you analyze PayPal stock using traditional valuation metrics, you might not find it to be an exceptional deal.

However, despite the high valuation, the stock still has upside potential. This indicates that there is plenty of potential for near-term growth. Given its strong growth prospects and the increasing demand for digital payments, PYPL stock is certainly a solid investment. Despite the high valuation, investors can benefit from the near-term upside potential and should consider PayPal stock as part of their portfolio.

Share Price

PYPL stock has been a steady performer among tech stocks despite its high valuation. On Wednesday, the stock opened at $61.8 and closed at $62.0, which was 0.1% down from the previous day’s closing price. Analysts suggest that PYPL stock is still undervalued despite its high valuation, and offers investors great upside potential with strong near-term prospects.

The company’s focus on mobile payments, e-commerce, and other digital services, combined with its strong presence in the US, Europe, Australia, and other markets makes it a strong contender for growth in the coming years. The company is well positioned for growth due to its low debt levels, healthy cash balances, and a strong competitive edge in the digital payments space. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Paypal Holdings. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Paypal Holdings. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Paypal Holdings. More…

Key Ratios Snapshot

Some of the financial key ratios for Paypal Holdings are shown below. More…

Analysis

GoodWhale has conducted an analysis of PAYPAL HOLDINGS‘ financials, and according to our Star Chart, the company is strong in growth and profitability, medium in asset, and weak in dividend. Furthermore, based on its performance, PAYPAL HOLDINGS is classified as a ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. We believe PAYPAL HOLDINGS may be of particular interest to investors looking for long-term growth. What’s more, with a high health score of 10/10 with regard to its cashflows and debt, PAYPAL HOLDINGS is capable to pay off debt and fund future operations. This makes the company even more appealing to those seeking a reliable means of return on investment. More…

Peers

PayPal Holdings Inc is an American company operating a worldwide online payments system that supports online money transfers and serves as an electronic alternative to traditional paper methods like checks and money orders. The company operates as a payment processor for online vendors, auction sites, and many other commercial users, for which it charges a fee in exchange for benefits such as one-click transactions and password memory. PayPal’s primary competitors are Visa Inc, Mastercard Inc, American Express Co, and Discover Financial Services.

– Visa Inc ($NYSE:V)

Visa Inc is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories. Visa’s mission is to enable global commerce by making it easy, safe, and efficient for people and businesses to move money. The company’s products and services enable consumers and businesses to make purchases, send money, and accept payments. Visa also offers a suite of products and services for financial institutions, merchants, and government entities that help them to meet their customers’ needs.

Visa Inc had a market cap of 401.19B as of 2022. The company’s ROE was 31.6%. Visa Inc operates in more than 200 countries and territories and provides a wide range of products and services to consumers, businesses, financial institutions, and government entities.

– Mastercard Inc ($NYSE:MA)

Mastercard is a technology company that connects consumers, financial institutions, merchants, governments & businesses worldwide, enabling them to use secure & convenient electronic payments. As of 2022, Mastercard has a market cap of 295.32B and a Return on Equity of 110.3%. The company has been operational for over 50 years and is a leading player in the global payments industry. Mastercard is headquartered in Purchase, New York, United States.

– American Express Co ($NYSE:AXP)

American Express Co is a financial services company with a market cap of 104.64B as of 2022. The company provides credit cards, charge cards, and travelers’ cheques to consumers and businesses worldwide. It also operates a global merchant acquiring network. American Express Co was founded in 1850 and is headquartered in New York, New York.

Summary

Investing in PayPal Holdings (PYPL) stock offers plenty of near-term upside potential due to its solid financial performance. Its revenue and earnings have exceeded analyst expectations for the past several quarters. The company has also seen strong growth in its active customer base and total payment volume.

Furthermore, PYPL has an attractive valuation compared to its peers and has a solid balance sheet. All of these factors make PYPL an attractive option for investors looking for a relatively conservative stock that could provide strong returns in the future.