From Payments to Profits, This Fintech Could Be Turning a Corner

One payments stock has been left for dead, but new leadership and growth levers are in play.

With shares still heavily discounted, this could be a prime opportunity for investors seeking turnaround prospects in late 2025.

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General Motors | GM

Price: $58.75

General Motors is riding a wave of resilience, with shares up more than 14% year-to-date despite a challenging backdrop.

The company has benefited from stronger-than-expected U.S. auto sales and steady demand for pickups and SUVs, categories that tend to hold up even in a choppy economy.

GM is also making progress on its electric vehicle (EV) strategy, highlighted by fleet orders for its Silverado EV and continued investment in its Ultium battery platform.

That said, the technical picture is less convincing.

Indicators such as the Relative Strength Index (RSI) and Williams %R have been flashing “overbought” signals through mid-August, suggesting the stock could be due for a pause after its recent run.

Analyst sentiment is mixed, with only one notable Buy rating in recent weeks.

Why It Matters: GM’s fundamentals remain attractive, with a low P/E of just 9.3 and a 1% dividend.

Investors looking for value in industrials may see pullbacks as opportunities to accumulate shares, especially with tariffs on European autos staying elevated, giving Detroit automakers a relative edge in the U.S. market.

Coca-Cola | KO

Price: $68.80

Coca-Cola is proving why blue chips matter in volatile markets.

Shares are up 11% in 2025, and while they’ve pulled back slightly from highs, the company continues to deliver steady growth.

Recent reports suggest Coca-Cola is considering a sale of Costa Coffee, the U.K. chain it acquired in 2018 for $5 billion.

At first glance, that looks like retreat, but in reality, it may free up capital to double down on faster-growing, higher-margin categories like energy drinks, hydration, and no-sugar beverages.

Second-quarter results showed that U.S. demand held up despite inflationary pressures, with a strong international performance as well.

Coca-Cola’s scale, distribution, and global brand power give it pricing flexibility that many consumer companies lack.

Why It Matters: Income-oriented investors know Coca-Cola’s reputation: 60+ consecutive years of dividend hikes, a nearly 3% yield, and durable cash flow.

If Costa is sold, it could strengthen the balance sheet and sharpen Coca-Cola’s focus on its strongest segments.

In uncertain markets, this stock remains a defensive anchor with dependable upside potential.

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Apple | AAPL

Price: $230.44

Apple’s 2025 journey has been a roller coaster. Shares are down nearly 6% year-to-date but have rebounded from summer lows, trading near $229.

Earlier this year, tariffs from the Trump administration cost the company nearly $1 billion in quarterly earnings.

However, CEO Tim Cook’s surprise $100 billion commitment to U.S. manufacturing eased trade tensions, helping Apple regain some of the lost ground.

Strong iPhone demand in China and a push into AI, including a planned revamp of Siri, potentially powered by Google’s Gemini, have added fuel to the rebound.

Despite these wins, Apple remains expensive at ~35x forward earnings, well above peers.

That premium reflects the company’s brand strength, global customer base, and consistent cash generation.

Analysts are cautiously optimistic: many see potential for Apple to sustain momentum if it can deliver on its AI roadmap and continue expanding in services, health, and wearables.

Why It Matters: Apple isn’t cheap, but it offers something investors crave in volatile markets: durability.

If AI upgrades and supply-chain investments succeed, shares could have room to run. If not, Apple still provides stability and modest income, with a 0.45% dividend yield.

Merck & Co. | MRK

Price: $84.05

Merck has been under pressure this year, with shares down 14% and trading just above $85, close to their 52-week low.

The pharmaceutical giant recently beat earnings estimates on EPS but slightly missed revenue expectations.

The market reaction was muted, but upcoming catalysts could shift sentiment.

At the European Society of Cardiology Congress later this month, Merck will present new clinical data on treatments for heart failure and pulmonary hypertension, including updates on its promising WINREVAIR drug.

Meanwhile, oncology remains Merck’s growth engine, with Keytruda continuing to lead in immuno-oncology and new candidates like sotatercept and vericiguat adding to the long-term pipeline.

From a valuation perspective, Merck looks inexpensive.

The stock trades at a forward P/E ratio of just 13.1, which is well below the average for the healthcare sector, while offering a healthy dividend yield of 3.8%.

The company’s 77% gross margin reflects its ability to generate strong profits from its innovative therapies.

Why It Matters: Merck’s pullback has created a potential entry point for value investors.

With multiple late-stage trials ahead and one of the best balance sheets in pharma, the stock could appeal to investors seeking defensive growth at a discount.

PayPal | PYPL

Price: $69.66

Once the face of digital payments, this fintech giant has endured a tough few years.

Shares are still down nearly 80% from their 2021 peak and currently sit around $70, off 19% year-to-date. But there are signs the company may be on the verge of a turnaround.

In Q2, total payment volume increased by 6%, while revenue rose by 5%.

Thanks to cost-cutting and a sharper operational focus from the new leadership, adjusted EPS increased by 18%.

Venmo, often seen as under-monetized, is now growing revenue at a 20%+ clip, and management is building an advertising platform to leverage PayPal’s vast consumer data.

The company also sees a major opportunity in in-store payments, a $200 billion annual revenue pool where it currently holds less than 1% share.

Despite these initiatives, the stock trades at just 10x expected free cash flow for 2025, implying investors remain skeptical about a rebound.

Analysts, however, are more optimistic: many see the potential for 20% annual earnings growth over the next several years, a pace that suggests the current valuation may be undervalued.

Why It Matters: With new leadership, stronger margins, and multiple growth levers, this fintech is starting to look like a classic rebound candidate.

For investors willing to be patient, the stock’s discount to its historical highs could present a compelling entry point.

Today’s lineup shows the market’s mix of resilience and opportunity. From autos and travel to tech and healthcare, the catalysts are stacking up.

Staying selective, focusing on strong balance sheets, proven cash flow, and clear growth drivers, may be the best way to position ahead of the next leg higher.

Stat of the Day – 81%

With 90% of S&P 500 companies now reported, 81% have posted a positive EPS surprise and 81% have topped revenue expectations, according to FactSet.

That’s one of the strongest beat rates in recent years, suggesting corporate fundamentals remain resilient even as markets grapple with tariffs, rates, and global growth concerns.