2 Cheap Stocks With Tons of Upside
The market's major indexes have bounced back since their March 2020 lows, but many stocks within them still haven't. Great companies like Paypal (NASDAQ: PYPL) and Lemonade (NYSE: LMND) have been beaten down by unrealistic expectations and previously high valuations. Down 41% and 81% from their highs, respectively, here's why both stocks still present great buying opportunities.
Payment processor Paypal is best known for Venmo, which lets users send and receive money from their phones. The company makes money from transfer and payment fees for Paypal, Venmo, and "buy now, pay later" loans.
But supply chain constraints worldwide have slowed down online shopping, and in its third-quarter earnings report, the company announced that it was scaling back its fourth-quarter revenue expectations as a result. This, plus lower-than-expected revenue in Q3, sent the stock tumbling to its lowest price-to-sales multiple since May 2020.
Source Fool.com
