Is PayPal a Scam‑Free Gold Mine?
TL;DR: PayPal’s current Price/Earnings quotient sits in the lowest range of the last five years, earnings are surging, and a conservative price target could push the stock to nearly $150 in just two years. People are saying bulls are waking up and the next big movement could very well be the one you don’t want to miss.
What’s the Scoop?
- PayPal dropped a massive 84 % from its 2021 zenith. Back then it was trading at a height‑of‑the‑world P/E of the order of 133 – a level that would make a Wall Street hard‑core fan gasp.
- Since 2022 the company has been the beacon of considerable undervaluation, with the forward P/E hovering around 13 and the current valuation at 17.4.
- Gross and Net Earnings Keep Growing:
- 2022 EPS: $2.09
- 2023 EPS: $3.84
- 2024 forecast: $4.66
- 2025 forecast: $5.13
- With a conservative P/E of 30 the stock could spike to roughly $150 per share.
Why People Think PayPal Is a “Great” Buy Right Now
- Forecasted earnings growth of 17.5 % over the next five years.
- Sales grew an average of 14 % in the last five years.
- Severe share‑buyback burn in 2022/2023 – less shares, more earnings per share.
- The technical pattern has a rounded bottom on a choppy graph, suggesting a possible bullish reversal.
Cory Mitchell’s Take (Trading.biz)
“PayPal sold off 84 % from its 2021 high, and the P/E had been ridiculously high. It’s now far under‑valued and has a bottoming pattern that looks healthy.”
When the future earnings shine bright and the price is in the 30‑P/E comfort zone, he’s estimating a target price of $150 in a couple of years.
How to Get In (and Out)
- PayPal’s chart is still a bit choppy, so buying below $67 could be a strategic move.
- Waiting for a deeper pullback (say $60) might mean missing the rise, but could also yield a bigger payoff if the stock rebounds.
- Don’t ignore the risk: the company might slip to an even lower P/E or see future earnings estimates wobble, which could keep the price from shooting up.
- Always plan your exit before you invest, regardless of whether the stock climbs or dips.
Bottom Line: Is PayPal Ready to Take Off?
Yes, the fundamentals look strong. The earnings trajectory is up, the P/E is in its lowest five‑year range, and the chart beeps a rounded bottom. If you’re willing to ride the volatility and aim for a future target near $150, PayPal might be more than just a tease – it could be a magic carpet ride. But remember, even a strong foundation can wobble if market conditions shift. Keep your funnel, your mindset, and a decent safety net handy.
