On Tuesday, PayPal (NASDAQ:) stock soared nearly 9% following the release of its Q2 earnings report. The company reported better-than-expected revenue and earnings, with a significant 8% surge in transaction margin.

At the opening bell, PayPal stock was trading around $64 per share, marking a positive start to the day for investors. The payments giant’s strong performance in Q2 has sparked optimism among shareholders and analysts alike.

Turnaround Mode: A Closer Look

CEO Alex Chriss’s efforts to streamline operations and refocus on core strengths have started to pay off, with transaction margin showing its best growth rate in three years. This improvement, along with a rise in total payment volume and number of transactions, indicates a positive shift in PayPal’s trajectory.

Outlook is Bright: What to Expect

PayPal has raised its guidance for revenue and earnings for both the fiscal third quarter and full year, signaling confidence in its continued growth. The company’s improved financials and increased free cash flow provide a solid foundation for future investments and expansion.

Is PayPal Stock a Buy?

With a current trading multiple of just 13 times earnings and a median price target of $75 from analysts, PayPal stock appears to be undervalued. Given its market leadership and potential for growth, now may be an opportune time to consider adding PayPal to your investment portfolio.

Overall, PayPal’s recent performance and outlook suggest a promising future for the company and its investors. By capitalizing on its strengths and strategic initiatives, PayPal is positioned for continued success in the evolving payments landscape.

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