10 Undervalued S&P 500 Stocks to Buy According to Hedge Funds

3. PayPal Holdings Inc. (NASDAQ:PYPL)

Forward P/E Ratio as of June 25: 14.75

Number of Hedge Fund Holders: 92

PayPal Holdings Inc. (NASDAQ:PYPL) is one of the undervalued S&P 500 stocks to buy according to hedge funds. On June 26, PayPal announced multi-year partnerships with the Big Ten and Big 12 Conferences to revolutionize the distribution of institutional payments from universities directly to student-athletes under a new revenue-sharing model.

The initiative allows athletic departments to securely and efficiently disburse funds through PayPal. The Big 12’s agreement with PayPal is valued at ~$100 million over 5 years, which amounts to ~$1 million per school annually. The collaboration follows a recent court decision permitting colleges and universities to share revenue directly with student-athletes.

The first phase of the rollout is expected to begin in the summer of 2025, with student-athletes starting to receive these institutional payments via PayPal as early as July 1. PayPal is also set to become a preferred payment partner for tuition payments at select schools and offer students and parents a convenient and flexible payment option starting in early 2026.

PayPal Holdings Inc. (NASDAQ:PYPL) is a technology platform that enables digital payments for merchants and consumers worldwide.