Paypal (PYPL) is a Top-Ranked Value Stock: Should You Buy?
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.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
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 is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 15.2X for the current fiscal year compared to the Internet - Software industry's P/E of 43.1X. Additionally, PYPL has a PEG Ratio of 0.9 and a Price/Cash Flow ratio of 17.1X. Value investors should also note PYPL's Price/Sales ratio of 3.1X.
A company's earnings performance is important for value investors as well. For fiscal 2023, 13 analysts revised their earnings estimate higher in the last 60 days for PYPL, while the Zacks Consensus Estimate has increased $0.12 to $4.89 per share. PYPL also holds an average earnings surprise of 6.6%.
PYPL should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
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