PYPL
💸 Despite recent earnings irregularity, PayPal excels at converting profits into free cash flow, which surged over 60% last year due to operational efficiency.
📉 The stock has retraced nearly 80% from its highs but appears to have found solid support around the $65 level, holding stable for three years.
💰 Trading at a reasonable 17 times earnings, PayPal presents a potential value opportunity, especially for a tech sector company, given its established support level.
@rankia:
“We close our list with an old acquaintance: PayPal. The US company is a pioneer in digital payment solutions and an undisputed reference in the world of e-commerce. As many of you surely know, PayPal allows sending and receiving money quickly and securely, becoming a global standard. By the way, did you know that the founder of PayPal was Elon Musk back in the mid-90s? That’s right, only back then it was called x.com, and I’m sure that name rings a bell. Well, in recent years, it has suffered some irregularity in its profits, but what seemed most remarkable to me is its ability to transform earnings into free cash flow, with an increase of more than 60% during the last fiscal year, driven mainly by operational improvements and more efficient expense management, rather than the sale of any type of asset. Furthermore, on a graphical level, it looks super interesting, as we see a pullback close to 80% from its highs, where the stock seems to have found solid ground around $65. And clearly, this offers a possible entry opportunity for two reasons: first, its price has remained stable for 3 years, which already shows the strength of that support, and second, its valuation is barely 17 times earnings, a quite reasonable multiple, and even low when talking about a tech sector company.”
Watch the exact part of the video where @rankia talks about PayPal Holdings, Inc. here:
Watch the video on YouTube
Read more articles analyzing PayPal Holdings, Inc. (PYPL) at the provided link. PYPL stock.
