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

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2]. Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum, helping investors identify stocks likely to outperform the market in the next 30 days [2][3]. - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3]. Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales, appealing to value investors [3]. Growth Score - The Growth Score assesses a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow to find sustainable growth opportunities [4]. Momentum Score - The Momentum Score capitalizes on price trends, using factors like recent price changes and earnings estimate shifts to identify favorable investment times [5]. VGM Score - The VGM Score combines Value, Growth, and Momentum Scores, providing a comprehensive indicator for investors seeking a balanced approach [6]. Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8]. Stock Selection Strategy - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering the direction of earnings estimate revisions [9][10]. Company Spotlight: PayPal (PYPL) - PayPal is recognized as a leading online payment solutions provider, holding a Zacks Rank of 2 (Buy) and a VGM Score of B, with a Value Style Score of B due to a forward P/E ratio of 14.94 [11]. - Recent analyst revisions have increased PayPal's earnings estimate for fiscal 2025 by $0.12 to$5.02 per share, with an average earnings surprise of 14.3%, making it a strong candidate for investment [12].