Let's talk about the popular PayPal Holdings, Inc. (NASDAQ:PYPL). The company's shares led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s examine PayPal Holdings’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
Is PayPal Holdings Still Cheap?
Good news, investors! PayPal Holdings is still a bargain right now. According to my valuation, the intrinsic value for the stock is $136.66, but it is currently trading at US$95.32 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, PayPal Holdings’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What kind of growth will PayPal Holdings generate?earnings-and-revenue-growth
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. PayPal Holdings' earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.
What This Means For You
Are you a shareholder?Since PYPL is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor?If you’ve been keeping an eye on PYPL for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy PYPL. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.
So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. For example, we've discovered2 warning signsthat you should run your eye over to get a better picture of PayPal Holdings.$PayPal(PYPL)$
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