1 Reason PayPal (PYPL) Is 1 of the Best Financial Stocks You Can Buy Today

Core Viewpoint - PayPal has significant growth potential and limited downside risk, despite its stock being 78% below its all-time high reached in 2021 [1] Group 1: Recent Performance - PayPal's total payment volume grew by 6% year over year, revenue increased by 5%, and adjusted earnings per share (EPS) rose by 18% in the second quarter [2] - The company is focusing on efficiency and returning to a decent level of growth [2] Group 2: Future Growth Potential - PayPal's management aims for a 20% annual earnings growth rate through various initiatives [4] - The company expects $6 billion to $7 billion in free cash flow (FCF) this year, trading at just 10 times FCF, indicating potential for significant investor returns if growth targets are met [5] Group 3: Strategic Opportunities - PayPal is working to better monetize Venmo, which is currently experiencing revenue growth of over 20% [6] - The company is leveraging consumer data to build an advertising platform and aims to integrate its various platforms (PayPal, Venmo, Braintree, etc.) [6] - In-store payments represent a massive growth opportunity, with PayPal currently holding less than 1% of this $200 billion annual revenue market [6]