Jim Cramer’s Exclusive List: 10 Stocks You Should Keep an Eye On

2. Paypal Holdings Inc. (NASDAQ:PYPL)

Number of Hedge Fund Investors: 87

Initially not impressed with Paypal Holdings Inc. (NASDAQ:PYPL), Cramer changed his stance after seeing the leadership of Alex Chriss, whom he described as a “miracle worker.” Cramer is now a buyer of Paypal Holdings Inc. (NASDAQ:PYPL), praising Chriss for his impact on the company.

“Look, I would’ve told you I didn’t have anything good to say about this, except for this guy, Alex Chriss—he seems like a miracle worker. I am a buyer of Paypal.”

In Q2 2024, Paypal Holdings Inc. (NASDAQ:PYPL) reported an adjusted EPS of $1.33, exceeding market expectations, and has increased its 2024 profit guidance, anticipating mid-to-high single-digit growth. This indicates Paypal Holdings Inc. (NASDAQ:PYPL)’s confidence in maintaining profitability despite broader economic challenges. Paypal Holdings Inc. (NASDAQ:PYPL) is concentrating on enhancing its core business, focusing on branded checkout services and digital payments while leveraging acquisitions like Venmo and Honey to expand its customer base and boost engagement.

Analysts believe Paypal Holdings Inc. (NASDAQ:PYPL) is undervalued compared to its historical averages, suggesting it could be a good buy for long-term investors. Additionally, Paypal Holdings Inc. (NASDAQ:PYPL)’s expansion into emerging areas like cryptocurrency and buy-now-pay-later (BNPL) services supports its growth prospects. These factors, along with the company’s emphasis on efficiency and profitability, make Paypal Holdings Inc. (NASDAQ:PYPL) an attractive option for those optimistic about its future in digital finance.