Why PayPal Stock May Have More Room to Run

Since the COVID-19 pandemic hit, investors have been enthusiastic about the growth prospects of just about any company that does business online. That's why shares of PayPal Holdings (NASDAQ: PYPL) have shot out of a cannon, surging 74% in the last three months.

The stock's valuation has spiked in conjunction with that rise, and now sports a forward P/E of 54. Analysts expect PayPal to deliver 7.7% growth on the bottom line this year, but earnings growth is expected to improve to 23.7% in 2021.

Its valuation might look high, but there are three reasons why investors might still be justified in buying PayPal now.

Source Fool.com