Are These Beaten-Down Stocks Generational Opportunities or Value Traps?
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By Prosper Junior Bakiny – Apr 27, 2026 at 8:30PM ESTKey PointsTeladoc's headwinds seem almost insurmountable right now.PayPal has strengths and opportunities that could allow it to bounce back.Some stocks saw massive surges during the early pandemic years because their businesses were well-positioned to perform well in that environment. Many of them have given back those gains, and then some, since then. Two corporations that fit this description are Teladoc Health (TDOC +1.74%) and PayPal (PYPL 1.47%). Both companies are down by more than 80% over the past five years. If they can recover, Teladoc and PayPal may offer patient investors who purchase their shares at current levels outstanding returns over the long run, making them potential generational buying opportunities. However, their shares could continue sinking if they fail to address their challenges. Should investors take a chance on Teladoc, PayPal, or both? Image source: The Motley Fool. 1.
Teladoc Health Teladoc is a telemedicine specialist. Patients can get basic consultations with doctors from the comfort of their homes through its platform, along with prescriptions and referrals. In some cases, that gets the job done without patients needing to see doctors in person, which saves everyone involved time and money. Teladoc has established itself as a notable player. The company's ecosystem featured more than 100 million members as of the end of 2025. Why, then, has Teladoc significantly lagged the market in recent years? Here are two reasons. First, the company encountered significant competition. Between other telehealth companies seeking to eat Teladoc's lunch, major corporations with deep existing ecosystems developing their own dedicated virtual conference platforms for telemedicine visits, and a shift back to in-person care, the company's total visits haven't grown much in recent years. Teladoc Health has faced particular challenges in the virtual therapy niche where it competes through BetterHelp. Once its most important growth drivers, BetterHelp's memberships and revenue have been declining. ExpandNYSE: TDOCTeladoc HealthToday's Change(1.74%) $0.10Current Price$5.85Key Data PointsMarket Cap$1.0BDay's Range$5.73 - $5.9252wk Range$4.40 - $9.77Volume2.7MAvg Vol5.9MGross Margin55.11% Second, Teladoc Health has remained unprofitable, partly due to high customer acquisition costs and the impact of acquisitions on its bottom line. Can Teladoc turn things around? The company has been expanding internationally while seeking third-party coverage for BetterHelp, which could help increase the service's appeal. However, Teladoc has had little success with that goal. Meanwhile, even though international revenue is growing at a good clip, investors should consider the possibility that Teladoc will, eventually, face the same challenges abroad. In my view, the stock is unlikely to recover anytime soon. It's best to stay away. 2. PayPal The popularity of e-commerce -- which requires digital payment methods -- soared during the pandemic. That allowed PayPal to post some of its best quarters ever. However, once things cooled down, the company's active accounts growth stalled, as did revenue and earnings growth. That said, I remain bullish on PayPal's future. Here are three reasons why. First, the company has developed a brand name and remains a trusted player in its niche of the fintech industry. That could be particularly important as the market continues to grow. Second, PayPal has arguably built a strong competitive edge thanks to network effects. The company ended 2025 with 439 million active accounts (up 1.1% year over year in the fourth quarter), along with a massive total payment volume of $1.79 trillion for the year, up 7% from 2024. ExpandNASDAQ: PYPLPayPalToday's Change(-1.47%) $-0.74Current Price$49.74Key Data PointsMarket Cap$45BDay's Range$49.40 - $50.5652wk Range$38.46 - $79.50Volume283KAvg Vol23MGross Margin41.78%Dividend Yield0.55% PayPal's large payment volume and significant adoption among both businesses and consumers attract more players on both sides of the commerce equation. Third, PayPal has attractive growth opportunities ahead. One of the most exciting is its push into digital advertising. PayPal has a massive amount of data on consumer shopping habits and preferences at its disposal to help companies craft highly targeted ads. This high-margin opportunity could help boost the company's revenue and earnings in the long run, even if it takes a little while for PayPal to scale this business. So, PayPal remains a top stock to buy and hold, especially at current levels. Read NextApr 23, 2026 •By Bram Berkowitz"The Big Short's" Michael Burry Just Threw Cold Water on SaaS Armageddon. 3 Software Stocks He's BuyingApr 20, 2026 •By Matt Frankel, CFPBest Fintech Stocks to Buy in 2026 and How to Invest in ThemApr 18, 2026 •By Jennifer SaibilIs This Payments Stock Undervalued After Its Recent Decline?Apr 18, 2026 •By Neil PatelWhere Will PayPal Stock Be in 1 Year?Apr 17, 2026 •By Neil RozenbaumThis Stock Is at Its Lowest Valuation Ever, And Earnings Could Change EverythingApr 16, 2026 •By Leo SunFrom PayPal to Palantir: What Peter Thiel's Track Record Means for Patient Shareholders TodayAbout the AuthorProsper Junior Bakiny is a contributing Motley Fool healthcare analyst covering biotechnology, pharmaceuticals, and healthcare stocks.
Before The Motley Fool, Prosper wrote about investing topics ranging from stock market news to private equity for various companies. He holds a master’s degree in corporate finance from the University of Maryland Global Campus.TMFPBakinyStocks MentionedPayPalNASDAQ: PYPL$49.77(-1.41%)-$0.71Teladoc HealthNYSE: TDOC$5.85(+1.74%)+$0.10*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.