$PayPal(PYPL)$ PayPal (NASDAQ:PYPL) stock saw an explosive gain after Covid-19, but shares have paid the price amid the fallout in growth stocks. I don’t know that it would have really mattered, but PayPal’s association with crypto and high growth put a target on the stock’s back.
Now, though, the narrative has changed — at least in my mind. The company has raised its earnings outlook in two consecutive quarters, even though the share price has recently probed new 52-week lows. Consensus expectations now call for 9% revenue growth in fiscal 2023 and roughly 17% earnings growth. Admittedly, that comes after a year where 2022 earnings likely fell about 11%.
Still though, it leaves shares trading at just 16.6 times forward earnings. That’s too cheap for a stock that can put together double-digit earnings and revenue growth.
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