10 Best Stocks Under $100 To Invest In

4) PayPal Holdings, Inc. (NASDAQ:PYPL)

Stock Price as of November 6: $81.41

Number of Hedge Fund Holders: 87

PayPal Holdings, Inc. (NASDAQ:PYPL) operates a technology platform that enables digital payments on behalf of merchants and consumers.

Wall Street analysts believe that PayPal Holdings, Inc. (NASDAQ:PYPL)’s competitive advantage revolves around its network effect, which has been established over several years. The company’s management continues to pursue numerous strategic initiatives in a bid to drive growth and improve profitability. It is focusing on enhancing mobile checkout experiences, which demonstrated healthy conversion uplifts in early testing phases. Braintree, a key component of PayPal Holdings, Inc. (NASDAQ:PYPL)’s offerings, should continue to contribute positively to transaction margin dollar growth.

The company’s focus on strategic initiatives like Fastlane, PayPal Everywhere, and enhanced mobile checkout experiences place it well for healthy future growth. Fastlane aims at a significant portion of the e-commerce market which is not served by button-based solutions. This provides a substantial growth opportunity. Furthermore, PayPal Holdings, Inc. (NASDAQ:PYPL)’s efforts to improve product velocity might result in better transaction gross profit performance.

Also, Venmo’s strong user base and increasing adoption of monetization features like Venmo debit card and Pay with Venmo service should fuel PayPal Holdings, Inc. (NASDAQ:PYPL)’s revenue and profitability.

Mizuho upped its target price on shares of PayPal Holdings, Inc. (NASDAQ:PYPL) from $90.00 to $100.00, giving an “Outperform” rating on 14^th October. Longleaf Partners, managed by Southeastern Asset Management, released its Q3 2024 investor letter. Here is what the fund said:

“PayPal Holdings, Inc. (NASDAQ:PYPL) – Digital payments platform PayPal was a contributor for the quarter. The company posted solid results, with gross margin dollars growing by 8%, an improvement over the 4% increase in the previous quarter. Strong cost management also led to double-digit FCF growth, a key metric for us. The company further enhanced shareholder value by repurchasing nearly 10% of its shares on an annualized basis, leading to even stronger FCF per share growth. Much of what we envisioned at our initial investment is materializing quicker than expected, driven by the improved leadership of relatively new CEO Alex Chriss.”