Main financial assets discussed: PayPal (NASDAQ: PYPL) stock
Top 3 key points:
1. While PayPal's growth has slowed down, its earnings per share (EPS) is growing at double digits, total payment volume (TPV) growth is accelerating, unbranded processing is gaining traction, and operating margins continue to expand.
2. Transaction revenue growth is driven by an increase in TPV and the growth of Braintree, offset by a slowdown in PayPal's core products and services.
3. PayPal's take rates and margins are declining due to the growth of unbranded processing, but the company is focused on improving monetization and introducing higher-margin services.
Recommended actions: **Buy**. The article suggests that PayPal is still a high-quality business capable of consistent growth. The stock is trading at a low valuation, and there is potential for upside as the company improves margins and returns to growth.
The article mentions PayPal (NASDAQ:PYPL) stock. The author's suggestion is to buy PayPal stock as they believe it is a high-quality business capable of consistent growth. The author highlights that while PayPal's growth has slowed down, its earnings per share (EPS) is growing at double digits, total payment volume (TPV) growth is accelerating, unbranded processing is gaining traction, operating margins are expanding, and the company is aggressively buying back shares. The author also discusses the main takeaways from PayPal's Q2 results, including revenue growth, TPV growth, declining take rates, and declining active accounts. The author analyzes PayPal's profitability, financial health, and valuation. The author concludes that PayPal is trading at a large margin of safety and has the potential for significant upside.
Main financial assets discussed: PayPal (PYPL) stock
Top 3 key points:
1. PayPal's stock is currently trading at multi-year lows, with the RSI indicating oversold conditions and technical indicators suggesting potential momentum and sentiment improvement.
2. Despite a temporary slowdown and market overreaction to the economic slowdown, PayPal is expected to continue growing revenues and profitability in the future. The company could also see a management shakeup and cost-cutting measures to improve margins.
3. From a valuation perspective, PayPal is considered dirt cheap, trading at a low forward P/E multiple. Consensus estimates and higher-end projections suggest significant upside potential for the stock price.
Recommended actions: **Buy**
Four preeminent growth stocks that investors may regret not buying after the Nasdaq bear market dip are PayPal Holdings, Fastly, BioMarin Pharmaceutical, and Palo Alto Networks.
Summary: Many investors are predicting a new bull market for the S&P 500, and while it has yet to reach a new high, it is only 7% away; three stocks to consider buying are Amazon, which has a strong presence in the logistics market and opportunities in AI, Mastercard, which benefits from its business moat and growth in emerging markets, and Vertex Pharmaceuticals, which has potential catalysts in its pipeline and an attractive valuation.
Four growth stocks that investors should consider buying in the wake of the Nasdaq bear market dip are Walt Disney, Exelixis, Qorvo, and Palo Alto Networks.
Investors should consider buying undervalued fintech stocks like Block and PayPal, which have experienced significant drops in their stock prices but have strong potential for revenue growth and increased profitability in the long term.
Despite the historically weak performance of the stock market in September, now might be a good time for investors to seek out discounted stocks, with Bill.com being a potential stock to buy due to its strong growth and expanding market, while Robinhood Markets might be a stock to sell due to its declining customer base and reliance on a revenue model that is banned in major Western countries.
Wall Street is currently divided on whether the stock market is in a new bull market or if it needs to reclaim its previous all-time high, but investors should focus on buying quality stocks and holding them for the long term in preparation for the next bull market; two recommended stocks to consider are Oracle, which is expanding its presence in AI, and Palo Alto Networks, a leading cybersecurity provider.
The stock market typically experiences higher volatility in the month of October, but historical data shows that stocks tend to perform better in October than many investors expect.
Three stocks to consider buying in October that could potentially soar more than 40% over the next 12 months, according to Wall Street, are BioNTech, PayPal Holdings, and Brookfield Infrastructure.
Tech stocks, including the Nasdaq and companies like Airbnb, are facing a rough start to October as a spike in interest rates leads investors to pull out of risky assets.
Analysts recommend buying Pfizer, Cisco Systems, PayPal, Expedia, and American Airlines stocks due to attractive valuations and potential for growth despite recent market sell-offs.
October has historically been a challenging month for stocks, and recent declines in the market, driven by elevated bond yields and expectations of higher interest rates, are causing concerns among investors.
Summary: Despite the difficult months for the stock market, Wall Street veteran Art Cashin believes October is a month of opportunity and suggests investing in Apple and Oracle stocks due to their growth potential, strong financial position, and focus on shareholder returns.
CNBC's Jim Cramer suggests investors keep an eye on Vertex Pharmaceuticals, a biotechnology company developing a non-opioid drug to treat acute pain, which could potentially be the largest market opportunity in the world.
The S&P 500 is nearing bull market territory and Wall Street sees significant upside for fintech growth stocks PayPal and DigitalOcean. PayPal's strong market position and potential for high revenue growth make it an attractive investment, while DigitalOcean's focus on SMBs and expansion into AI technologies present opportunities for long-term revenue growth.
Technical and seasonal indicators suggest that it may be a good time to buy stocks in the U.S. market, despite potential curveballs from upcoming inflation data and third-quarter earnings season.
