Here's Why Paypal (PYPL) is a Strong Growth Stock

Zacks Investment Research highlights PayPal (PYPL) as a potential growth stock, noting its #3 (Hold) Zacks Rank but an "A" VGM Score. PYPL's Growth Style Score of B is supported by a projected 9.3% year-over-year earnings growth for the current fiscal year, with the fiscal 2025 Zacks Consensus Estimate increasing by $0.07 to $5.08 per share following upward revisions from 11 analysts in the last 60 days; PYPL also boasts a 14% average earnings surprise.

Analysis

PayPal (PYPL), despite a neutral Zacks Rank #3 (Hold) designation, demonstrates compelling growth attributes that warrant investor attention. The company achieves a superior VGM Score of 'A' and a solid Growth Style Score of 'B', factors Zacks identifies as indicative of strong potential for market outperformance, particularly for Hold-rated stocks. This assessment is supported by a forecasted 9.3% year-over-year earnings growth for the current fiscal year and a consistent history of exceeding expectations, evidenced by an average earnings surprise of 14%. Furthermore, positive analyst sentiment for fiscal 2025 is reflected in 11 upward earnings estimate revisions over the past 60 days, which have elevated the Zacks Consensus Estimate by $0.07 to $5.08 per share. According to Zacks, the combination of a #3 Rank with 'A' or 'B' Style Scores suggests continued upside potential that investors should not overlook.

Key Decisions for Investors

• Investors may find PayPal (PYPL) an interesting case, as its #3 (Hold) Zacks Rank is complemented by strong 'A' VGM and 'B' Growth Style Scores, which historically suggest potential for upside according to Zacks methodology.
• Growth-focused investors should note PYPL's projected 9.3% current-year earnings growth, its 14% average earnings surprise, and the recent positive analyst revisions for fiscal 2025 earnings to $5.08 per share.
• It is advisable to monitor for any changes in PYPL's Zacks Rank and earnings estimate revisions, as these are critical components of its investment thesis within the Zacks framework.