PayPal (PYPL) Just Became the Single Best Financial Stock to Buy Right Now

PayPal isn't just surviving the digital payment revolution—it's leading the charge while traditional banks play catch-up.

The Digital Payment Juggernaut

PYPL's infrastructure handles more transaction volume than most legacy banks combined. Its network processes billions in crypto and fiat movements daily—without the overhead of physical branches or outdated clearing systems.

Why Institutions Are Stacking PYPL

Hedge funds and asset managers are quietly accumulating positions. They see what Wall Street analysts miss: PayPal's pivot into blockchain settlements and stablecoin integration positions it as the bridge between traditional finance and decentralized assets.

The Cynical Take

Meanwhile, traditional banks still charge $35 overdraft fees for the privilege of letting you access your own money—a business model that's looking more prehistoric by the day.

Bottom line: PayPal isn't a payment company anymore. It's the infrastructure for the entire digital economy—and it's just getting started.

Image source: Getty Images.

Lots of future potential

While the recent growth has been modest, there's a lot going on behind the scenes. Earlier this year, PayPal's leaders shared their future vision, and to name just a few highlights:

• PayPal sees a massive opportunity to monetize Venmo better, and this is already taking shape, as Venmo's revenue is now growing at a 20%+ rate.
• PayPal has a tremendous amount of consumer data and is leveraging this to build an advertising platform.
• The company ultimately wants to combine all its platforms (PayPal, Venmo, Braintree, etc.) into one.
• In-store payments are a massive growth opportunity and a priority for management. PayPal currently has less than 1% of this market, and it's a $200 billion annual revenue opportunity.

These are just a few of the ways PayPal's management believes it can accelerate growth and produce a 20% annual earnings growth rate in the not-too-distant future.

In the meantime, however, the stock is priced for virtually no expected growth. PayPal expects $6 billion to $7 billion in free cash FLOW (FCF) this year, which means the stock trades for just 10 times FCF.

The bottom line is that if PayPal can deliver on its growth ambitions, it could be a massive success for investors who buy at these levels. If not, it's still a highly profitable industry leader that generates tons of cash.