San Jose, California-based PayPal Holdings, Inc. (PYPL) operates a technology platform that enables digital payments on behalf of merchants and consumers. Valued at $77.4 billion by market cap, the company offers online payment solutions worldwide.

Shares of this fintech giant have outperformed the broader market considerably over the past year. PYPL has gained 39.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31.1%. In 2024, PYPL stock is up 27.2%, surpassing SPX’s 19.8% rise on a YTD basis. 

Narrowing the focus, PYPL has lagged behind the Gabelli Financial Services Opportunities ETF (GABF). The exchange-traded fund has gained about 51.5% over the past year. Moreover, the ETF’s 36.7% gains on a YTD basis outshine the stock’s returns over the same time frame.

PYPL's strong performance was driven by ongoing TPV growth, supported by its two-sided platform connecting merchants and consumers. With insights from handling 6.6 billion transactions last quarter, PayPal excels in data collection and utilization, particularly in fraud detection. Additionally, the focus on enhancing Venmo monetization, increasing payment volume, and improving take rate were key factors in PYPL's success.

On Oct. 29, PYPL shares closed down more than 3% after reporting its Q3 results. Its revenue stood at $7.8 billion, up 5.8% year over year. The company’s adjusted EPS increased 22.4% year over year to $1.20. 

For the current fiscal year, ending in December, analysts expect PYPL’s EPS to grow 20.6% to $4.56 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.

Among the 42 analysts covering PYPL stock, the consensus is a “Moderate Buy.” That’s based on 15 “Strong Buy” ratings, two “Moderate Buys,” 24 “Holds,” and one “Strong Sell.”

This configuration is less bullish than a month ago, with 16 analysts suggesting a “Strong Buy.”

On Nov. 4, Barclays PLC (BCS) analyst Ramsey El Assal maintained a “Buy” rating on PYPL with a price target of $92, implying a potential upside of 17.8% from current levels.

The mean price target of $86.23 represents a 10.4% premium to PYPL’s current price levels. The Street-high price target of $125 suggests an ambitious upside potential of 60%. 

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On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.