Top Picks 2017: PayPal
01/13/2017 6:00 am EST
There are definitely some transformational factors currently working in favor of this Top Pick, such as increasing cashless trends and a favorable regulatory environment, notes Bryan Perry, editor of Cash Machine.
The ability of PayPal (PYPL) to strike big deals while delivering outsized growth versus peers makes this a choice stock pick for 2017 and well beyond.
Though shares of PayPal have been range bound for the past ten months, the company has been performing strongly in global payments, both online and mobile. The company ended the third quarter with 192 million active customer accounts.
Partnership and mobile centrism were PayPal’s top priorities. The company’s ongoing strategic partnerships with Visa (V), MasterCard (MA) and Citigroup (C) offer great flexibility and choice to consumers and businesses alike.
Partnerships with Facebook (FB), Apple (AAPL), and Alibaba (BABA) are also delivering positive results that are all in the early stages of much broader expansion. Big deals with big players spell big top and bottom line growth.
Paypal is also exploring partnerships across multiple original equipment manufacturers, technology companies, retailers and financial institutions.
Even more exciting is PayPal is a hard to find, go-to millennial stock as the company has accelerated its push into mobile with Venomo, continuing to bolster its stake in mobile payments.
Last quarter, the company’s mobile payment volume was $26 billion, up 56% and representing 29% of total payment volume.
The business model is about as straightforward as it gets — growth in new accounts and transactions per active account. PayPal's strategy is clear and management is completely focused on driving growth in these two metrics for 2017.
The kind of earnings momentum demonstrated in 2016 coupled with the technical base the stock has built sets the stage for a big run that could make PayPal the belle of the 2017 Christmas ball.