13 Most Undervalued NASDAQ Stocks To Buy According To Hedge Funds

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

Number of Hedge Fund Holders: 94

Forward P/E Ratio as of March 12: 14.10

Placed second on our list of the most undervalued stocks is PayPal Holdings, Inc. (NASDAQ:PYPL). It provides a global digital payments platform for merchants and consumers. On February 24, the company announced that it is bringing its enterprise services under one umbrella with PayPal Open, combining brands like Braintree and Hyperwallet to streamline business payments. With PayPal Open, businesses get easier access to fraud protection, buy now, pay later options, global transactions in 140 currencies, lending solutions, and AI-powered insights, all through a single platform. However, Venmo will stay separate in the United States because of its strong brand recognition.

In 2024, PayPal Holdings, Inc. (NASDAQ:PYPL) saw solid financial and operational growth, driven by improvements in branded checkout, P2P services, and Venmo, along with a stronger pricing strategy. Revenue increased 7% to $32 billion, while total payment volume increased 10% to nearly $1.7 trillion. Non-GAAP earnings per share also grew 21% year-over-year. The company generated $6.8 billion in free cash flow and repurchased $6 billion in shares last year. For 2025, PayPal expects steady growth in transaction margin dollars as well as strong free cash flow.

As per Insider Monkey’s fourth quarter database, 94 hedge funds were bullish on PayPal Holdings, Inc. (NASDAQ:PYPL), up from 90 funds in the prior quarter.