5 Most Undervalued High Quality Stocks to Buy Now

​3. PayPal Holdings, Inc. (NASDAQ:PYPL)

Forward Price to Earnings Ratio: 9.5

Number of Hedge Fund Holders: 78

​PayPal Holdings, Inc. (NASDAQ:PYPL) is one of the Most Undervalued High Quality Stocks to Buy Now. The company posted its fiscal Q1 2026 earnings on May 5. During the quarter, it posted $8.35 billion in revenue, up 7.21% year-over-year and ahead of expectations by $296.78 million. However, the GAAP EPS of $1.21 fell short of the expectations by $0.03.

​Although the Total Payment Volume rose 11% at spot rates to $464 billion, the payment transactions per active account decreased 1% on a trailing 12-month basis. Looking ahead, management expects low single-digit revenue growth for Q2 2026 and a low single-digit decline in transaction margin dollars. The full year 2026 guidance was reiterated at a year-over-year flat transaction margin dollars and 3% growth in non-transaction operating expense.

​Following the release, on May 6, Robert W. Baird lowered the price target on PayPal Holdings, Inc. (NASDAQ:PYPL) from $52 to $50, while keeping a Hold rating. On the same day, Monness also reiterated a Hold rating on the stock with a $50 price target. Robert W. Baird noted updating the firm’s updated model following the Q1 results, which led to a reduced price target on the stock.

​PayPal Holdings Inc. (NASDAQ:PYPL) operates a technology platform that enables digital payments for merchants and consumers worldwide. The company operates a two-sided network at scale that connects merchants and consumers.