Why Paypal (PYPL) is a Top Value Stock for the Long-Term

Zacks Investment Research highlights PayPal (PYPL) as a potentially attractive value stock, citing its Value Style Score of B and a forward P/E ratio of 14.03. The analysis notes that PYPL holds a Zacks Rank of #3 (Hold) with a VGM Score of B, and that analysts have revised fiscal year 2025 earnings estimates upwards by $0.07 to $5.08 per share in the last 60 days, with the company demonstrating a 14% average earnings surprise.

Analysis

According to Zacks Investment Research, PayPal (PYPL) presents characteristics of a value stock, meriting investor attention despite a Zacks Rank of #3 (Hold). The company exhibits a Value Style Score of B, underpinned by an attractive forward P/E ratio of 14.03, which is a key indicator for value investors. Complementing this, PYPL also holds a VGM Score of B. Positive momentum in analyst sentiment is evident, with 11 analysts revising their fiscal 2025 earnings estimates upward in the past 60 days. This has resulted in the Zacks Consensus Estimate for fiscal 2025 earnings per share increasing by $0.07 to $5.08. Furthermore, PayPal has a track record of outperforming expectations, boasting an average earnings surprise of 14%. The Zacks methodology suggests that a #3 ranked stock with strong Style Scores (A or B) can still offer upside potential, particularly when coupled with positive earnings estimate revisions, positioning PYPL as a stock to monitor closely within its framework.

Key Decisions for Investors

• Investors focused on value metrics should note PayPal's forward P/E of 14.03 and its B-rated Value Style Score as potentially attractive entry points.
• While the Zacks Rank #3 (Hold) suggests a neutral short-term outlook, the positive earnings estimate revisions for FY2025 and strong VGM score of B indicate underlying fundamental strengths that warrant continued monitoring.
• Consider evaluating PayPal's position within a diversified portfolio, weighing its value characteristics and positive analyst revisions against the current 'Hold' recommendation from Zacks, particularly if aligning with a long-term investment horizon.