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

Core Insights - The article emphasizes the importance of utilizing Zacks Premium services to enhance stock market investment confidence and effectiveness [1][2] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [3] - The Value Score identifies attractive and discounted stocks using various financial ratios [4] - The Growth Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [5] - The Momentum Score helps investors capitalize on price trends, utilizing factors like one-week price changes and monthly earnings estimate changes [6] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for stock selection [7] Zacks Rank - The Zacks Rank is a proprietary model based on earnings estimate revisions, aiding investors in building successful portfolios [8] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [9] - There are over 800 stocks rated 1 or 2, which can be overwhelming for investors [10] Investment Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [11] - Stocks with lower ranks (3, 4, 5) should still have strong Style Scores to mitigate downside risks [12] Company Spotlight: PayPal (PYPL) - PayPal is a leading online payment solutions provider, rated 3 (Hold) on the Zacks Rank, with a VGM Score of B and a Value Style Score of B, indicating attractive valuation metrics [13] - Recent analyst revisions have increased PayPal's earnings estimate for fiscal 2025 by $0.03 to $4.92 per share, with an average earnings surprise of 14.3% [14]