Premium content from Motley Fool Share Advisor UK
Our monthly Fire Best Buys Now are designed to highlight our team’s three favourite, most timely Buys from our growing list of growth-focused Fire recommendations, to help Fools build out their portfolios.
“Best Buys Now” Pick #1:
PayPal (NASDAQ:PYPL)
- PayPal’s Q1 earnings showed net revenues increasing by 2% at constant currency, and while this isn’t stellar growth, underlying PayPal branded volume growth was decent at 6%.
- The company is focusing on profitable, “durable” growth, rather than a higher proportion of low-margin processing volumes.
- To that end, underlying dollar margin growth (an important profit measure) grew at 8%, a slightly faster rate than the previous quarter.
- The company has cut costs in recent years as part of an efficiency drive, helping operating margins move higher, with margins increasing by a further 257 basis points to 20.7% in Q1. These improvements also highlight the scalable nature of payment processing.
