PayPal stock trading cheap with strong portfolio and partnerships, but caution advised for investors

From Nasdaq: 2025-04-23 13:37:00

PayPal (PYPL) shares are trading cheap with a Value Score of B. The stock has a forward P/E of 11.86X, lower than competitors Visa (V), Mastercard (MA), and Apple (AAPL). Despite this, PYPL shares have dropped 25.7% year to date due to competition and a challenging macroeconomic environment.

PayPal’s strong portfolio includes investments in checkout, P2P, and Venmo, driving total active accounts. The Fastlane solution is expected to boost future volumes, with transaction margin growth projected at least 5% in 2025 and high-single-digit growth in 2027. Partnerships with Adyen, Global Payments, and Pfizer are attracting more merchants to Fastlane.

PayPal offers positive earnings guidance with a projected growth range of 6-10% for 2025 and higher low teens growth for 2027. Despite this, intensifying competition and a bearish trend indicate caution for investors. PYPL currently has a Zacks Rank #3 (Hold), suggesting a wait-and-see approach.

PayPal shares are trading below the 50-day and 200-day moving averages, indicating a bearish trend. The stock is attractive for long-term investors due to a robust portfolio and expanding partner base. However, competition and deceleration in unbranded volume are concerns. Investors should wait for a more favorable point to accumulate PYPL shares.



Read more at Nasdaq: PayPal is Trading Dirty Cheap at 11.86X P/E: Buy or Hold the Stock?