Portfolio Strength to Benefit PayPal's (PYPL) Q4 Earnings
PayPal Holdings, Inc. PYPL is slated to report fourth-quarter 2023 results on Feb 7.
The company’s portfolio strength has been helping it to maintain a deep and trusted relationship with merchants and consumers. Its two-sided platform helps develop direct financial relationships with customers and merchants.
These factors are expected to have contributed well to the Total Payment Volume (“TPV”), which is one of PayPal's key growth metrics.
In the last reported quarter, TPV improved 15% year over year on a spot rate basis and 13% on a currency-neutral basis to $387.7 billion.
For fourth-quarter 2023, the Zacks Consensus Estimate for TPV is pegged at $403.53 billion, suggesting growth of 12.9% on a year-over-year basis.
Click here to find out how the company’s overall fourth-quarter performance is expected to be.
PayPal Holdings, Inc. Price and Consensus
PayPal Holdings, Inc. price-consensus-chart | PayPal Holdings, Inc. Quote
Portfolio Strength: A Key Catalyst
PayPal’s continuous efforts toward strengthening the services portfolio are likely to have aided in gaining traction among various customers in the fourth quarter.
In the fourth quarter, the company introduced the ability for customers to add their PayPal and Venmo credit or debit cards to Apple Wallet, enabling secure and quick payments on iPhone or Apple Watch while still earning cashback and rewards.
This apart, its TPV is likely to have benefited from Venmo’s strengthening monetization efforts. One Touch’s growing momentum across merchants, on the heels of its robust mobile checkout services, is expected to have driven growth in PayPal’s mobile TPV in the fourth quarter.
Its strengthening cryptocurrency efforts, along with the integration with Venmo and the expanding global footprint of its cryptocurrency service, are expected to have contributed well.
The growing momentum in PayPal's buy now pay later solution is likely to have benefited its quarterly performance.
Zacks Rank & Stocks to Consider
Currently, PayPal carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Arista Networks ANET, Badger Meter BMI and AMETEK AME. Arista Networks sports a Zacks Rank #1 (Strong Buy), while Badger Meter and AMETEK carry a Zacks Rank #2 (Buy) each.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks shares have gained 110.5% in the past year. The long-term earnings growth rate for ANET is currently projected at 19.77%.
Badger Meter shares have gained 15.7% in the past year. The long-term earnings growth rate for BMI is currently projected at 12.27%.
AMETEK shares have gained 13.5% in the past year. The long-term earnings growth rate for AME is currently projected at 9.58%.
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Badger Meter, Inc. (BMI) : Free Stock Analysis Report
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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
