5 Best Stocks To Buy According To Terry Smith’s Fundsmith LLP

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

Fundsmith LLP’s Stake Value: $3,197,674,000

Percentage of Fundsmith LLP’s 13F Portfolio: 8.84%

Number of Hedge Fund Holders: 123

PayPal Holdings, Inc. (NASDAQ:PYPL), an American multinational financial technology corporation, is one of the top stock picks of Terry Smith’s Fundsmith LLP as of September 2021. Smith’s hedge fund owns a $3.19 billion position in PayPal Holdings, Inc. (NASDAQ:PYPL), which accounts for 8.84% of the total 13F portfolio. PayPal Holdings, Inc. (NASDAQ:PYPL) is one of the fintech companies that can potentially replace traditional credit card payment transactions. 

BMO Capital analyst James Fotheringham on January 2 upgraded  PayPal Holdings, Inc. (NASDAQ:PYPL) to Outperform from Market Perform with a price target of $224, down from $278, crediting improved stock valuation for the upgrade.  

On November 18,  PayPal Holdings, Inc. (NASDAQ:PYPL) posted its Q3 results. The company announced earnings per share of $1.11, exceeding estimates by $0.03. 

Fisher Asset Management is one of the biggest PayPal Holdings, Inc. (NASDAQ:PYPL) stakeholders from the third quarter, with a $3.12 billion position in the company. Overall, 123 hedge funds were long  PayPal Holdings, Inc. (NASDAQ:PYPL) in Q3. 

Here is what Baron Opportunity Fund has to say about PayPal Holdings, Inc. (NASDAQ:PYPL) in its Q3 2021 investor letter:

“PayPal Holdings, Inc. – PayPal first caught consumers’ attention as a peer-to-peer digital payment application, particularly as a convenient and trustworthy way for eBay buyers to pay eBay sellers in the early days of online shopping. Over the years it expanded to become a near ubiquitous online retail payments platform, while also offering other shopping tools and digital services, such as digital wallet, bill pay, Buy Now-Pay Later, crypto-currency, in-store retail, and more. According to PayPal’s CEO, these new acts enabled the company to increase the TAM it “play[s] in” by “over six times in the last three years.” PayPal has 403 million active accounts today and is on its way towards its 750 million target by 2025 and 1 billion longer term, for a total TAM sized at over $1 trillion.”