PayPal: Healthy FCF And Buybacks Can Improve Bullish Sentiment
Summary
- PayPal stock is still down 15% YTD while many tech stocks and the broader S&P500 has recovered from the lows of April.
- PayPal faces competitive pressure from big tech players like Apple, but the company is showing good momentum in key segments.
- The number of payment transactions dipped by 7% YoY in the recent earnings, which needs to be closely watched.
- Healthy FCF and a high buyback rate can help improve the EPS momentum and the bullish sentiment towards the stock.
- Strong EPS growth projections have resulted in the stock trading at only 13.3 times the EPS estimate for the fiscal year ending Dec 2026, which is quite attractive.
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