PayPal Holdings (PYPL) has a “Perfect 10” Smart Score on TipRanks, which indicates that the stock has the potential to outperform the market. It is worth highlighting that PYPL stock has risen about 47% in the past year, surpassing the S&P 500’s (SPX) nearly 25% gain.
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Before moving ahead, let’s see how TipRanks calculates a Smart Score for stocks. The potential of a stock is evaluated based on eight key market factors, including analyst ratings and technical analysis, among others. After considering these factors, a Smart Score between 1 and 10 is assigned to the stock, with 10 being the highest score.
Breaking Down PYPL’s Top Smart Score
Interestingly, PayPal stock has received a “Perfect 10” Smart Score, meeting seven out of eight key parameters. The stock has received a positive signal from hedge funds, with data showing that hedge funds bought about 4.5 million shares of the company in the last quarter. The stock also enjoys bullish Blogger sentiment and Positive News Sentiment on TipRanks.
Furthermore, PYPL’s Moderate Buy consensus rating on TipRanks is another factor supporting its top Smart Score.
Factors Supporting PYPL’s Performance
PayPal has undergone significant changes in 2024 under the leadership of new CEO Alex Chriss, focusing on enhancing efficiency and reducing costs. Last year in January, the company announced plans to cut about 2,500 jobs, representing 9% of its global workforce, as part of efforts to “right-size” the organization.
Additionally, PayPal introduced AI-driven products aimed at diversifying revenue streams beyond transaction-related volume. In November, PayPal launched a money pooling feature that allows users to collect and manage funds with friends and family for group expenses like gifts and travel.
These initiatives have contributed to PayPal’s positive performance in 2024.
What Is the Price Target for PYPL?
Turning to Wall Street, PYPL stock has a Moderate Buy consensus rating based on 15 Buys and 14 Holds assigned in the last three months. At $91.08, the average PayPal price target implies a 5.69% upside potential.
