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Should Value Investors Buy Paypal Holdings (PYPL) Stock?

Qualivian Investment Partners recently released its Q2 2020 Investor Letter, a copy of which you can download here. The fund’s performance in Q2 was ahead of the S&P 500 by 9.6% and 9.5% on a gross and net basis. You should check out Qualivian Investment Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.

In the said letter, Qualivian Investment Partners highlighted a few stocks and Paypal Holdings Inc. (NASDAQ:PYPL) is one of them. Paypal Holdings Inc. (NASDAQ:PYPL) engages in the development of technology platform for digital payments. Year-to-date, Paypal Holdings Inc. (NASDAQ:PYPL) stock gained 83.9% and on August 24th it had a closing price of $198.88. Here is what Qualivian Investment Partners said:

“PayPal: PYPL benefited from strong tailwinds due to COVID and more payments moving online in an accelerated fashion. Fiscal Q3 2020 results were substantially ahead of already high expectations. Total payment volume growth and net new user growth were the strongest since PYPL listed. PYPL is clearly benefiting from the faster digitization of payments and commerce. PYPL gained users who had not previously shopped online and saw new spend categories which were previously offline move to online post crisis. Omni-channel convergence (online ordering and instore pickup) has massively increased their total addressable market. PYPL is prioritizing the in-store opportunity and focusing on other forms of engagement like rewards, bill pay and Honey. It has strong growth optionality in eCommerce.”

Paypal PYPL Mastercard MA Visa

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Yesterday, we published an article revealing that Paypal Holdings Inc. (NASDAQ:PYPL) is one of the 11 stocks hedge funds are crazy about in the second quarter.

In Q1 2020, the number of bullish hedge fund positions on Paypal Holdings Inc. (NASDAQ:PYPL) stock decreased by about 6% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with Paypal’s growth potential. Our calculations showed that Paypal Holdings Inc. (NASDAQ:PYPL) is ranked #9 among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, legal marijuana is one of the fastest growing industries right now, so we are checking out ideas like this under-the-radar stock to identify the next tenbagger. We go through lists like the 10 most profitable companies in America to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. You can subscribe to our free enewsletter below to receive our stories in your inbox:

Disclosure: None. This article is originally published at Insider Monkey.