The digital payments company produces consistently strong and growing free cash flows.
The stock offers a reasonable value back by huge stock buyback plans.
My last recommendation on PayPal Holdings (NASDAQ:PYPL) over a year ago was to buy the digital payments stock alongside a $2 billion share buyback. After a big rally, the company still signals value even with the market cap soaring beyond $55 billion.
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Wells Fargo reported Q4 results that missed analyst estimates.
The large bank still trades at the high end of sector valuations, despite a relative underperformance over the last three months.
Investors should remember that success is all relative.
Before the open on Friday, Wells Fargo (NYSE:WFC) reported quarterly earnings along with a group of large financials. The troubled bank actually missed estimates while the sector had generally blowout numbers.
CenturyLink ended 2016 down at the lows, as the market was unimpressed with the company's decision to purchase Level 3.
The 9% dividend appears easily supported after the deal closes, based on free cash flow analysis.
A recent analyst price target provides ample upside that is a bonus with the large dividend.
CenturyLink (NYSE:CTL) ended 2016 in the dumps. The market didn't fondly view the company's proposed merger with Level 3 Communications(NASDAQ:LVLT), sending the stock down to the lows from the start of the year.
Even after the 6.6% gain on the first trading day of 2017, CenturyLink still offers a nearly 9% dividend yield. Should investors rush into the stock at around $25 per share?