PayPal Holdings, Inc. (Nasdaq: PYPL)

PayPal Holdings, Inc. (Nasdaq: PYPL) operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide.

It provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names.

The company’s payments platform allows consumers to send and receive payments in approximately 200 markets and in approximately 100 currencies, withdraw funds to their bank accounts in 56 currencies, and hold balances in their PayPal accounts in 25 currencies. 

In the fourth quarter of last year, PayPal reported $6.9 billion in revenue, up 13% year over year. 

Shares are now trading at the same level as they were in the first part of 2018, despite having added hundreds of millions of active account holders. At the very least, PayPal is a great company trading at a significant discount, relative to where it was last year. From a more technical perspective, PayPal’s low PEG ratio means it is trading at a discount compared to its peers.

There is no doubt about it: PayPal looks like a cheap stock at the moment. However, upon closer look, the discount appears to be a miscalculation made by Wall Street. If for nothing else, the headwinds pulling share prices down appear to be micro in nature, and the long-term thesis remains intact.