Should You Buy, Sell, or Hold PayPal Stock Before Q1 Earnings?

From Nasdaq: 2025-04-25 14:02:00

PayPal (PYPL) is gearing up to announce its first-quarter 2025 results on April 29. Expectations include flat to low single-digit revenue growth and non-GAAP earnings between $1.15 and $1.17 per share. Analysts forecast first-quarter revenues of $7.83 billion and earnings of $1.15 per share, down slightly from the previous year.

PayPal has consistently surpassed earnings estimates, with an average surprise of 14.26% in the last four quarters. The upcoming results are anticipated to showcase the company’s strong portfolio, including innovations like Fastlane and successful partnerships with major players like Amazon, Apple, and Shopify.

Despite positive developments, PayPal’s stock has declined by 23.8% this year, underperforming the sector and industry. However, with a Value Score of B and a lower forward 12-month Price/Sales ratio than the industry average, the stock may be considered undervalued.

PayPal’s expanding portfolio, which includes offerings like Fastlane and Venmo, has helped maintain strong relationships with consumers and merchants. The company expects transaction margin growth in dollar terms and high-single-digit growth in the coming years, supported by ongoing investments and partnerships.

Investors looking at PayPal for the long term may find growth prospects promising, given the rising demand for digital payment solutions. However, near-term challenges like macroeconomic conditions and consumer spending trends may impact the stock. With a Zacks Rank #3 (Hold), waiting for a better entry point could be prudent.



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