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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Paypal (PYPL)
PayPal has emerged as one of the largest online payment solutions providers on the back of its strong product portfolio and two-sided platform that enables it to offer smooth and secure transaction facility to both customers and merchants.
PYPL boasts a Value Style Score of B and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Paypal are trading at a forward earnings multiple of 14.2X, as well as a PEG Ratio of 1.2, a Price/Cash Flow ratio of 12.9X, and a Price/Sales ratio of 2.2X.
A company's earnings performance is important for value investors as well. For fiscal 2025, 11 analysts revised their earnings estimate higher in the last 60 days for PYPL, while the Zacks Consensus Estimate has increased $0.05 to $5.08 per share. PYPL also holds an average earnings surprise of 14%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding PYPL to their portfolios.
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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).