Core Insights - PayPal Holdings (PYPL) stock increased by 4.7% following the announcement of the PayPal Ads Manager, a platform aimed at small businesses to monetize website traffic and create new revenue streams, set to launch in early 2026 [1][8] Group 1: PayPal Ads Manager - The Ads Manager is designed to support small to medium businesses in advertising, leveraging PayPal's extensive merchant base across over 200 markets [2] - The launch of Ads Manager positions PayPal to tap into the growing retail media sector, which has become a multi-billion-dollar industry [2][8] Group 2: Strategic Initiatives - PayPal has introduced several initiatives, including a 5% cash back offer on Buy Now, Pay Later purchases for U.S. customers until the end of the year [3] - The company has launched PayPal World for global wallet interoperability and formed a partnership with Google to enhance payment experiences [3][4] Group 3: AI Investments - PayPal is investing heavily in AI for personalized commerce, fraud detection, and expanding cryptocurrency integration within its app [4] - The focus on emerging markets indicates PayPal's ambition to evolve into a comprehensive commerce platform beyond just payments [4] Group 4: Competitive Landscape - Amazon Ads generated $15.69 billion in sales in Q2 2025, reflecting a 23% year-over-year increase, highlighting the competitive environment in the advertising space [5] - Walmart's advertising arm, Walmart Connect, saw revenues increase by 31% year-over-year in Q1 of fiscal 2026, showcasing the growth potential in retail media [6] Group 5: Financial Performance - PayPal shares have declined by 11.4% year-to-date, underperforming the broader industry and the S&P 500 Index [7] - The stock is trading at a forward 12-month P/E of 13.17X, significantly lower than the industry average of 22.01X, indicating a potentially undervalued position [9] - The Zacks Consensus Estimate for PayPal's full-year 2025 EPS suggests a 12.5% growth year-over-year, reflecting positive revisions in estimates [10]

Core Insights - PayPal Holdings (PYPL) is launching a 5% cash back incentive for U.S. customers using its Buy Now, Pay Later (BNPL) service for online purchases from October 6, 2025, through the end of the year, aiming to enhance holiday spending and support merchant growth [1][9] - The company is also introducing a "Pay Monthly" option for in-store purchases, which will provide the same 5% cash back and flexibility at checkout, with a rollout planned over the coming weeks [2][9] - Over 80% of consumers who have used or considered BNPL are open to using it for holiday shopping this year, indicating a strong opportunity for merchants to increase sales and customer loyalty through flexible payment options [3] Company Performance - PayPal is a leading provider of BNPL services globally, with its BNPL solution available in major markets, allowing shoppers to split purchases into manageable payments while earning cash back [4] - In Q2 2025, BNPL volume for PayPal grew over 20% year over year, and monthly active accounts increased by 18%, demonstrating strong consumer engagement [5] - PayPal shares have declined 16.4% year to date, underperforming the broader industry and the S&P 500 Index [8] Valuation and Estimates - PayPal shares are currently trading at a discount, with a forward 12-month P/E ratio of 12.59X compared to the Zacks Financial Transaction Services industry's 20.21X [11] - The Zacks Consensus Estimate for full-year 2025 EPS has been revised upward, suggesting a 12.5% growth year over year [13] - PayPal holds a Zacks Rank 2 (Buy), indicating a positive outlook for the stock [17]

Western Union (WU) ended the recent trading session at $8.08, demonstrating a +1.13% change from the preceding day's closing price. This change outpaced the S&P 500's 0.34% gain on the day. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.42%. Prior to today's trading, shares of the money transfer company had lost 8.69% lagged the Business Services sector's gain of 0.7% and the S&P 500's gain of 3.54%.The investment community will be paying close attent ...

Core Viewpoint - PagSeguro Digital Ltd. is showing positive momentum in its stock performance and is expected to report strong financial results in the upcoming release, with significant year-over-year growth in earnings and revenue [1][2][3]. Company Performance - The stock price of PagSeguro Digital Ltd. closed at $10.32, reflecting a 2.79% increase from the previous day, outperforming the S&P 500's gain of 0.26% [1]. - Over the past month, the company's shares have risen by 12.05%, contrasting with a 0.31% loss in the Business Services sector and a 2.87% gain in the S&P 500 [1]. Financial Expectations - The anticipated earnings per share (EPS) for the upcoming quarter is $0.36, representing a 12.5% increase compared to the same quarter last year [2]. - Revenue is expected to reach $947.9 million, indicating an 8.8% increase from the same quarter of the previous year [2]. - Full-year estimates project earnings of $1.4 per share and revenue of $3.68 billion, reflecting year-over-year changes of +15.7% and +5.35%, respectively [3]. Analyst Estimates and Rankings - Recent revisions to analyst estimates for PagSeguro Digital Ltd. are seen as a positive indicator for the business outlook, with the Zacks Consensus EPS estimate rising by 8.53% over the past month [3][5]. - The company currently holds a Zacks Rank of 1 (Strong Buy), which has historically contributed to an average annual return of +25% since 1988 [5]. Valuation Metrics - PagSeguro Digital Ltd. has a Forward P/E ratio of 7.17, which is significantly lower than the industry average of 14.63, indicating a potential undervaluation [6]. - The company also has a PEG ratio of 0.5, compared to the Financial Transaction Services industry's average PEG ratio of 1.19, suggesting favorable growth prospects relative to its valuation [7]. Industry Context - The Financial Transaction Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 52, placing it in the top 22% of over 250 industries [8]. - Research indicates that industries in the top 50% of the Zacks Rank tend to outperform those in the bottom half by a factor of 2 to 1 [8].

Core Insights - PayPal's Buy Now, Pay Later (BNPL) feature is a significant growth driver, with BNPL volume increasing over 20% year over year in Q2 2025 and monthly active accounts growing by 18% [1][8] Group 1: BNPL Growth and Partnerships - PayPal has entered a two-year agreement with Blue Owl Capital to sell approximately $7 billion of its U.S. "Pay in 4" BNPL receivables, while continuing to manage customer interactions [2] - The BNPL solution has proven beneficial for merchants, exemplified by Ace Hardware, which saw a 35% increase in PayPal sales and a sevenfold rise in average order values after adopting the BNPL service [3] - PayPal's BNPL is widely available, operating in nine global markets, with plans for further expansion in 2025 [4] Group 2: Economic Impact and Competitive Landscape - Consumers using BNPL have an average order value over 80% higher than standard branded checkouts, enhancing merchant sales and creating additional revenue opportunities [4] - In comparison, Block's BNPL Gross Merchandise Value (GMV) grew 17% year over year to $9.11 billion in Q2 2025, while Affirm reported a 45.6% increase in total transactions to 31.3 million in Q3 2025 [5][6] Group 3: Financial Performance and Valuation - PayPal shares have declined 20.5% year to date, underperforming the broader industry and the S&P 500 Index [7] - The stock is trading at a forward 12-month P/E of 12.02X, significantly lower than the industry average of 21.13X, indicating a potential undervaluation [9] - The Zacks Consensus Estimate for PayPal's full-year 2025 EPS has been revised upward, suggesting a year-over-year growth of 12.5% [10]

Core Insights - PayPal Holdings (PYPL) is trading at a low valuation with a price-to-earnings (P/E) multiple of 11.93, significantly below its three-year average of 15.05 and the industry average of 21.55, indicating a potential investment opportunity [1][6][16] - The valuation gap compared to peers like Visa (26.42X) and Mastercard (31.18X) raises questions about whether this dislocation presents an attractive entry point for investors [2][16] - Despite the low valuation, PayPal faces challenges including macroeconomic uncertainty, competition from fintech, and the need for innovation in the payment landscape [3][4] Valuation and Earnings Outlook - PayPal's shares have declined 21.1% year-to-date due to various market pressures, including fraud concerns in Europe and slowing U.S. retail spending [4] - Earnings estimates show a projected growth of 12.5% for 2025 and 10.6% for 2026, indicating improving fundamentals [6][7] - The Zacks Consensus Estimate for 2025 earnings is $5.23 per share, with a further increase to $5.79 per share in 2026, suggesting that upward revisions may not be fully reflected in the current share price [7][8] Innovation and Strategic Partnerships - PayPal has formed a multi-year partnership with Google to enhance digital commerce experiences using AI, integrating PayPal's services across Google products [9] - The introduction of PayPal Links allows users to send and receive money easily, driving customer acquisition and ecosystem integration [11] - The "PayPal World" initiative aims to create interoperability among global wallet users, potentially transforming PayPal into a global commerce network [12] Growth Drivers - Venmo is a significant growth driver, with revenues increasing over 20% in Q2 2025 and total payment volume growing 12% [14] - Branded checkout is expanding, with over 60% of U.S. branded volume transacted through PayPal's upgraded experience, and international rollouts are in progress [15] - PayPal's initiatives in AI, stablecoins, and global commerce position it well for future growth [13][17] Investment Perspective - PayPal's current valuation suggests that the market may be underestimating its long-term potential, presenting a buy opportunity for investors [16][18] - The company's strong balance sheet and multi-faceted growth strategy reinforce confidence in its recovery path despite near-term challenges [16][17]

[Music] Stocks our strategists feel are poised to deliver positive returns are featured now in their top stock picks of the week. Hi, Shiraz Mian here uh with the top stock video. Uh uh today uh Brian Hayes will be joining me and uh both of us have picked one stock uh each uh uh from the finance sector uh for both of us.Uh so so let me jump into mine. Um as you could see here on this slide uh I'm featuring JP Morgan. Uh needs no introduction.In this slide I'm showing the trailing one-year performance of JP ...

Group 1 - Freightos Limited (CRGO) is part of the Business Services group, which consists of 253 companies and currently ranks 3 within the Zacks Sector Rank [2] - The Zacks Rank system focuses on earnings estimates and revisions, with CRGO holding a Zacks Rank of 2 (Buy) and a 2.9% increase in the full-year earnings estimate over the past three months [3] - Year-to-date, CRGO has achieved an 8.2% return, significantly outperforming the Business Services sector's average return of 0.6% [4] Group 2 - CRGO belongs to the Financial Transaction Services industry, which includes 34 stocks and is currently ranked 53 in the Zacks Industry Rank, with the industry gaining 2.1% year-to-date [6] - Another notable stock in the Business Services sector is Futu Holdings Limited Sponsored ADR (FUTU), which has a year-to-date return of 117.4% and a Zacks Rank of 2 (Buy) [4][5] - The Technology Services industry, to which FUTU belongs, has 118 stocks and is ranked 87, with a year-to-date increase of 37.4% [7]

Core Insights - PayPal Holdings (PYPL) has announced a multi-year partnership with Google aimed at enhancing digital commerce experiences through innovative solutions for businesses and consumers [1][9] - The collaboration will focus on AI-powered shopping experiences and the development of standards for agentic commerce, leveraging PayPal's payment systems and Google's AI capabilities [2] Group 1: Partnership Details - The partnership will integrate PayPal's services, such as PayPal-branded checkout and PayPal Payouts, into various Google products, including Google Cloud, Google Ads, and Google Play [3][9] - PayPal will collaborate with Google Cloud to upgrade its technology and payment platform, enhancing the overall digital commerce landscape [3] Group 2: Market Position and Competitors - PayPal's existing partnerships with major companies like Visa, Mastercard, and Facebook demonstrate its commitment to improving payment experiences globally [4][5] - Competitors like Block Inc. and Affirm Holdings are also expanding their market presence through strategic partnerships, indicating a competitive landscape in the digital payment sector [6][7] Group 3: Financial Performance and Valuation - PayPal shares have declined 18.8% year to date, underperforming the broader industry and the S&P 500 Index [8] - The stock is currently trading at a forward 12-month P/E of 12.18X, significantly lower than the Zacks Financial Transaction Services industry's average of 21.89X, suggesting a potentially undervalued position [10] - The Zacks Consensus Estimate for PayPal's full-year 2025 EPS indicates a positive growth trend, with a projected year-over-year growth of 12.5% [11]

Group 1 - Visa's stock closed at $346.20, up 1.81% from the previous session, outperforming the S&P 500 which fell by 0.1% [1] - Over the past month, Visa's shares declined by 0.71%, underperforming the Business Services sector's gain of 1.53% and the S&P 500's gain of 2.57% [1] Group 2 - Analysts expect Visa to report an EPS of $2.96, a 9.23% increase year-over-year, and revenue of $10.59 billion, reflecting a 10.14% rise from the same quarter last year [2] - For the full year, earnings are projected at $11.43 per share and revenue at $39.84 billion, indicating increases of 13.73% and 10.89% respectively from the previous year [3] Group 3 - Recent adjustments to analyst estimates for Visa suggest positive sentiment regarding the company's business operations and profit generation capabilities [4] - The Zacks Rank system, which reflects these estimate changes, currently rates Visa at 3 (Hold) [6] Group 4 - Visa's Forward P/E ratio stands at 29.75, significantly higher than the industry average of 15.97, indicating a premium valuation [7] - The PEG ratio for Visa is 2.26, compared to the industry average of 1.24, suggesting a higher expected earnings growth trajectory relative to its peers [7] Group 5 - The Financial Transaction Services industry, which includes Visa, ranks 56 in the Zacks Industry Rank, placing it in the top 23% of over 250 industries [8]