InvestorPlaces Omor Ibne Ehsan recommended fintech stocks, which have been Wall Streets wallflowers for what seems like an eternity now. I agree 100%, as they can sprout in the right conditions. Among fintech firms, Im picking PayPal PYPL because largely disregarded PayPal stock is the perfect wallflower pick in 2024.

From payments processing to cross-border money transfers, PayPal is well known to merchants and consumers on multiple continents. Wall Street disregards PayPal due to its intense focus on the Magnificent Seven stocks. PayPal has a chance to deliver great results despite low expectations. 

PayPal Stock Has Plenty of Room to Run

Suffice it to say, theres no shortage of overhead room as PayPal stock once traded at $300 in 2021. All it would take is a positive catalyst to kick-start a wave buying activity.

Mark your calendar, as the potential catalyst is about to happen. PayPal is set to release its first-quarter 2024 earnings results on April 30, and as I alluded to earlier, low expectations could lead to a nice surprise.

Interestingly, the company itself set the tone for low expectations. Earlier this year, PayPal guided for zero year-over-year adjusted profit growth in 2024. At that time, the sellers took control of PayPal stock.

In late April, however, the buyers regained control. Wall Street only expects PayPal to have earned $1.22 per share in Q1 of 2024. Bear in mind, the company earned more than that in the previous two quarters: $1.30 per share in 2023s third quarter, and $1.48 in 2023s fourth quarter.

PayPal Is Undervalued and Underappreciated

This year so far, investors and analysts just havent had much love for PayPal. Perhaps theyre worried about PayPals recently appointed chief executive, Alex Chriss. A note from JPMorgan analysts concisely sum up the markets muted outlook on PayPals near-term growth prospects:

Its clear that 2024 will be more of a transition year than we were expecting, with previously targeted operating leverage coming after 2024. We expect pressure on the stock as estimates come down.

If this scares you, its time for a gut check as great contrarian opportunities can only come from downbeat outlooks. Rather than eschew them, value investors should seek out the markets wallflowers like PayPal.

Heres one way to look at it. Currently, PayPals GAAP trailing 12-month price-to-earnings ratio is 16.47x. In contrast, PayPals five-year average trailing P/E ratio is 50.18x. Clearly, the market once loved PayPal but now ignores it and thats great news for forward-thinking investors.

Buy PYPL Stock in April, Make Money in May

There are no guarantees, but PayPal could rise from the ashes with a blowout earnings report on April 30. If that happens, PayPal could go from undervalued to overvalued within a few weeks or even days.

Then, youll wish you had capitalized on this rare opportunity to wager on a fintech standby with positive-surprise potential. So, dont be late and dont hesitate grab some PayPal stock shares and get ready for this wallflower to grow fast.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content and crossed the occasional line on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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