Reported 8 months ago
Long-term investing requires optimism, but it can be risky when it comes to turnaround opportunities. PayPal and Advance Auto Parts are struggling businesses in need of a turnaround. PayPal's revenue growth isn't translating into higher free cash flow, but its new advertising business could change that trajectory quickly. On the other hand, Advance Auto Parts has seen declining profit margins due to an inefficient supply chain, but with a new CEO focusing on restructuring, the company has potential for significant profit growth. While PayPal's turnaround might be quicker, Advance Auto Parts offers higher upside potential due to its current low valuation.
Source: YAHOO