U.S. Federal Reserve More Likely to Cut Interest Rates! 3 Undervalued Stocks You Can Buy Now

By Parkev Tatevosian, CFA – Aug 27, 2025 at 10:00AM

NASDAQ: PYPL

PayPal

Market Cap

$66B

Today's Change

(-0.66%) -$0.47

Current Price

$69.72

Price as of August 27, 2025, 3:58 p.m. ET

Interest rates and stock valuations tend to be inversely related.

Federal Reserve Chairman Jerome Powell indicated the central bank is likely to cut interest rates soon.

*Stock prices used were the afternoon prices of Aug. 22, 2025. The video was published on Aug. 24, 2025.

About the Author

A Fool since 2019, and a graduate of Cal State LA with a B.S. in Finance and M.A. in Economics. Parkev is an adjunct professor of Finance and enjoys reading about financial and economic history. You'll often find him writing about stocks in the consumer goods and technology sectors.

TMFParkev

@TMFParkev

Parkev Tatevosian, CFA has positions in PayPal. The Motley Fool has positions in and recommends PayPal and SentinelOne. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal and short September 2025 $77.50 calls on PayPal. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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