PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It operates a two-sided network at scale that connects merchants and consumers that enables its customers to connect, transact, and send and receive payments through online and in person, as well as transfer and withdraw funds using various funding sources, such as bank accounts, PayPal or Venmo account balance, PayPal and Venmo branded credit products comprising its installment products, credit and debit cards, and cryptocurrencies, as well as other stored value products, including gift cards and eligible rewards. The company provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names. The company was founded in 1998 and is headquartered in San Jose, California.

PayPal looks like a mature business with strong profitability, but without the clear acceleration that would usually justify a more aggressive re-rating. The valuation picture is mixed: P/E, P/S, and P/FCF are below the industry median, which supports the idea of moderate undervaluation; however, P/B is noticeably above the median, suggesting that the market is already pricing in capital quality and is not offering a large discount on the balance sheet. The trend in valuation multiples is generally favorable: P/S and P/FCF have declined from higher levels, which usually points to a more attractive price relative to cash flow and revenue. At the same time, profitability remains weaker than the industry: gross margin, operating margin, and net profit margin are below the median, and their trajectory over recent periods is more slightly deteriorating than improving. This is an important limiting factor, because for fintech companies, sustained margin expansion is often the main driver of fair value growth. On the other hand, ROE, ROA, ROI, and return on tangible equity are very high and significantly exceed industry benchmarks, confirming strong efficiency in the use of capital and assets. Revenue and earnings remain large and stable, and net income and EPS look stronger than market averages, although without a pronounced year-over-year acceleration. The balance sheet does not appear strained overall: the current ratio is above 1.2, cash on hand is significant, but the quick ratio is zero, which points to the specifics of the current asset structure and reduces liquidity comfort. Leverage is moderate, but debt/equity is above the median, and long-term debt has not shown a sustained decline over the period, so this area cannot be considered a clear positive. Dividend yield is very low and is not a meaningful support factor for the valuation. Overall, the fundamentals support a moderately positive view of the company, but weak margins, elevated P/B, and imperfect liquidity limit upside re-rating potential. For an investor, this means that fair value should reflect the business quality and strong return on capital, but without overly optimistic expectations for multiple expansion.

PayPal Holdings, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, значительно упал

Средний индекс, без изменений. Рынок не поддерживает быков.

Medium index, flat. The market does not support the bulls.

Сильный индекс, без изменений. Рынок на стороне медведей.

Strong index, flat. The market is on the bears' side.

Слабый индекс, незначительно вырос. Приток средств в лонги остается на невысоком уровне.

Weak index, slightly up. The inflow of funds into longs remains at a low level.

Strong return on capital and inexpensive P/E, P/S, and P/FCF are combined with weak margins and an elevated P/B, so the valuation looks only moderately attractive.

PayPal Holdings, Inc.’s PYPL expanding integration strategy is giving its engagement story a broader reach. The company is bringing PayPal and Venmo into more everyday payment occasions, including college tuition, retail purchases and consumer financing. New integrations with Illumia, Nelnet Campus Commerce and TouchNet are extending the platforms into education payments, while integrations and platform initiatives across Buy Now, Pay Later (“BNPL”) and merchant services are further widening distribution.
The market has already rewarded that progress. PYPL has outperformed key rivals such as Visa Inc. V and Mastercard Incorporated MA over the past six months, reflecting investor confidence in PayPal’s growth.
Even so, the stock has pulled back from its six-month highs in August 2026, keeping the debate open over whether the current valuation still leaves enough room for further gains.
The bigger question is whether broader distribution can translate into deeper customer and merchant relationships rather than simply higher transaction volume. More payment use cases, wider BNPL availability and an increasingly connected merchant platform could strengthen engagement and monetization over time if PayPal can sustain execution and turn its expanding network into durable growth.
PayPal & Venmo Bring More Payment Choice to College Tuition
PayPal Holdings is broadening the role of PayPal and Venmo beyond online checkout by embedding its payment tools into more everyday financial experiences. Its recent integration push spans education, retail, consumer finance and merchant services, supporting efforts to deepen engagement, widen distribution and create more ways for customers to use its network.
A key development is PayPal and Venmo’s expansion into tuition payments through new integrations with Illumia, Nelnet Campus Commerce and TouchNet. Students and families at participating schools can now pay tuition fees through existing campus payment portals using PayPal or Venmo. The integrations are live at institutions including Butler University, Kansas State University, Michigan State University and Texas Tech University, with more schools expected to join in 2026.
The tuition initiative extends PayPal’s growing college presence. The company had already built momentum through agreements with the Big Ten and Big 12, Venmo NIL partnerships, college-branded cards and student ambassadors. Bringing tuition into the ecosystem gives PayPal exposure to a major payment category while offering users familiar funding choices, including bank accounts, cards and PayPal or Venmo balances.
Integration-Led Growth Supports PayPal’s Late-2026 Momentum
PayPal is also widening distribution for BNPL. In the second quarter of 2026, Temu introduced PayPal BNPL in Canada, expanding availability to eight markets globally, while Home Depot Canada added upstream presentment of PayPal’s BNPL options. These integrations can raise product visibility earlier in the shopping journey and help PayPal capture more checkout volume.
On the merchant side, PayPal is working to unify Braintree, PayPal Complete Payments and Hyperwallet into a single foundation. Management expects these efforts to improve interoperability and expand self-processing capabilities, merchant lending and payouts. Over time, the unified platform is expected to provide greater flexibility and reach while supporting emerging use cases such as PYUSD-enabled commerce and agentic payments.
These initiatives come amid improving momentum across PayPal’s business. Second-quarter total payment volume (TPV) rose 10% to $486.4 billion, while Venmo and Braintree continued to deliver mid-teens TPV growth. Broader integrations, financial-services expansion and ongoing technology upgrades are likely to help PayPal finish 2026 with a more diversified growth profile while strengthening customer and merchant engagement heading into 2027.
PayPal’s Key Risks
PayPal faces intense competition across checkout, BNPL and digital payments. At the same time, its broad technology modernization and platform-integration efforts create execution risk. Delays, weaker partner adoption or higher-than-expected costs could slow growth, pressure margins and reduce returns from these initiatives overall.
PYPL Shares Trade at a Discount
PayPal shares are trading cheap, as suggested by the Value Score of A. In terms of forward 12-month Price/Earnings (P/E), PYPL stock is trading at 9.39X compared with the Zacks Financial Transaction Services industry’s 17.58X.
Image Source: Zacks Investment Research
PYPL’s Earnings Estimate Revision Trends Upward
PayPal’s estimate revisions reflect a favorable trend for full-year 2026. The Zacks Consensus Estimate for 2026 EPS has moved a cent upward to $5.38 over the past month. This implies a 1.3% rise year over year.
Image Source: Zacks Investment Research
What Should Investors Do With PYPL Now?
PayPal’s expanding integrations, improving engagement across Venmo and BNPL, platform modernization and solid TPV growth strengthen its long-term growth prospects. Favorable earnings estimate revisions and a discounted valuation also support the investment case.
However, execution risks, competitive pressure and the stock’s recent pullback warrant some caution despite improving fundamentals. Investors may prefer to see more consistent evidence that broader distribution is translating into sustainable earnings growth. Therefore, investors may prefer to wait before adding this stock to their portfolio, while those who already have own it may consider holding their positions. PayPal currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Visa Inc. (V) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).

PayPal Expands Its Payment Reach: Buy, Hold or Fold the Stock?

Paypal (PYPL) ended the recent trading session at $53.29, demonstrating a +2.15% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.59%. On the other hand, the Dow registered a loss of 0.6%, and the technology-centric Nasdaq decreased by 0.65%.
Prior to today's trading, shares of the technology platform and digital payments company had lost 11.88% lagged the Business Services sector's loss of 3.5% and the S&P 500's loss of 1.37%.
Investors will be eagerly watching for the performance of Paypal in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.32, showcasing a 1.49% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $8.7 billion, showing a 3.38% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $5.38 per share and a revenue of $34.66 billion, demonstrating changes of +1.32% and +4.48%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Paypal. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.2% increase. Paypal is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Paypal is holding a Forward P/E ratio of 9.69. This represents a discount compared to its industry average Forward P/E of 13.34.
Also, we should mention that PYPL has a PEG ratio of 1.11. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 0.83.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Paypal (PYPL) Increases Despite Market Slip: Here's What You Need to Know

Wednesday, September 9, 2026
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Eli Lilly and Co. (LLY), Palo Alto Networks, Inc. (PANW) and Texas Instruments Inc. (TXN), as well as a micro-cap stock Stratus Properties Inc. (STRS). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
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The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-Markets Trade Lower Ahead of Inflation Data Thursday, Friday
Today's Featured Research Reports
Eli Lilly’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+49.9% vs. +34.7%). The company has seen extraordinary momentum in its cardiometabolic franchise. Demand for its popular GLP-1 drugs, Mounjaro and Zepbound, remains strong, making them the company’s key top-line drivers.
Lilly’s other new drugs like Kisunla, Omvoh and Jaypirca are also contributing to top-line growth. It is also making rapid pipeline progress in obesity and diabetes. Its new GLP-1 obesity pill, Foundayo, is expected to be a commercial game-changer. Its next-generation weight loss pill, retatrutide, if approved, could become another multibillion-dollar product.
Lilly has announced several M&A deals aimed at diversifying beyond GLP-1 drugs and expanding its presence in immunology, oncology and neuroscience. Rising pricing pressure on some drugs and potential competition in the GLP-1 market are some top-line headwinds.
(You can read the full research report on Eli Lilly here >>>)
Shares of Palo Alto Networks have outperformed the Zacks Security industry over the past year (+70.8% vs. +66.8%). The company continues to benefit as enterprises consolidate security tools and adapt defenses for AI-driven threats. Platformization is supporting larger customer commitments, while growth across SASE, software firewalls, Prisma AIRS, XSIAM, observability and identity broadens recurring revenues.
CyberArk and Chronosphere are extending the company into new security categories, with integration progress supporting cross-selling. Cash generation remains healthy, and fiscal 2027 guidance points to continued revenue growth and operating-margin expansion.
However, gross-margin compression from the cloud and SaaS mix, rising hosting and component costs, competition, a larger diluted share base and acquisition execution risks temper the outlook. The balance of durable demand drivers and execution risks supports a Neutral view.
(You can read the full research report on Palo Alto Networks here >>>)
Texas Instruments’ shares have outperformed the Zacks Semiconductor - General industry over the past year (+44.4% vs. +33.9%). The company is benefiting from broadening demand across industrial, data center and automotive markets, while its analog and embedded processing franchises support durable long-term growth. Internal manufacturing, expanding 300-millimeter capacity and CHIPS Act support strengthen supply control and cost efficiency.
The Silicon Labs acquisition should deepen wireless connectivity capabilities and broaden embedded opportunities. Cash generation is recovering as revenue and factory loadings rise, supporting dividends and buybacks. Management also sees demand broadening into the second half of 2026.
Risks remain from elevated debt, geopolitical and trade exposure, competition, seasonality and higher manufacturing costs. Still, broader end-market demand and rising free cash flow support an Outperform view for TXN shares.
(You can read the full research report on Texas Instruments here >>>)
Shares of Stratus have outperformed the Zacks Real Estate - Operations industry over the past year (+22.9% vs. -12.9%). This microcap company with a market capitalization of $151.26 million is anchored by its board-approved liquidation plan, which provides a defined path to monetizing assets and returning capital to shareholders. Strong liquidity, including $73.5 million in cash and additional revolver capacity, supports execution while allowing the company to advance development assets to value-enhancing milestones before sale.
Near-term catalysts include pending asset dispositions at New Caney, Amarra Villas and Jones Crossing, which could generate additional cash. Holden Hills remains a key source of embedded value, supported by third-party validation through a joint venture transaction.
However, key risks include significant 2026 debt maturities requiring refinancing, regulatory uncertainty surrounding Holden Hills development rights, continued weakness in multifamily markets, and declining recurring leasing income. Shares trade below book value but at a premium EV/sales multiple.
(You can read the full research report on Stratus here >>>)
Other noteworthy reports we are featuring today include BP p.l.c. (BP), PayPal Holdings, Inc. (PYPL) and Raymond James Financial, Inc. (RJF).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Palo Alto (PANW) Rides on Platform Consolidation
Featured Reports
Two-Sided Platform & Rich Partner Base Aids PayPal (PYPL)
Per the Zacks Analyst, PayPal gains from its two-sided platform, rich partner base and expanding efforts. However, a challenging macroeconomic and competitive environment remains a woe.
Acquisitions to Aid Raymond James' (RJF) Top Line Amid Cost Woes
Per the Zacks analyst, while Raymond James' efforts to expand through acquisitions and its global diversification efforts are expected to result in higher costs, these will likely drive the top line.
Symbotic Rides on Contracted Programs Amid High Customer Concentration
Per the Zacks Analyst, Symbotic benefits from a large contracted backlog, operational systems and a broader product roadmap. High customer concentration and project delays continues to bother.
Akamai (AKAM) Rides on Solid Demand for Cloud and Security Solutions
Per the Zacks analyst, strong demand for cloud infrastructure services to support AI workloads is expected to drive Akamai's top line. Continued growth in cybersecurity solutions is a positive.
Somnigroup (SGI) Benefits From Integration and Global Expansion
Per the Zacks analyst, Somnigroup is benefiting from Mattress Firm synergies, vertical integration and international growth, supporting earnings diversification as bedding demand recovers.
Microinverter, Energy Storage Expansion Drive Enphase Energy (ENPH)
Per the Zacks analyst, Enphase Energy's microinverter and energy storage expansion should support growth. New products and multiyear safe-harbor volumes will broaden its growth opportunities.
Innodata (INOD) Gains From Diversification, Timing Risks Linger
Per the Zacks analyst, broader Big Tech exposure and expanding AI capabilities support growth. However, project timing and concentrated revenues keep earnings visibility uneven.
New Upgrades
BP (BP) to Benefit From Key Upstream Project Pipeline
The Zacks analyst likes BP for its multi-year upstream project pipeline and structural cost actions, which should support stronger cash flow and returns.
Merit Medical (MMSI) Gains from Broad Product Portfolio, Global Growth
Per the Zacks analyst, Merit Medical's product launches, R&D investments and expanding global footprint are strengthening growth prospects, while WRAPSODY offers additional upside in renal therapies.
Creation of New Revenue Streams, Upbeat EBIT Outlook Aid Garrett (GTX)
Per the Zacks analyst, Garrett's efforts to extend its high-speed turbomachinery capabilities into power generation bode well for its top-line growth. An upbeat EBIT outlook also sparks optimism.
New Downgrades
UK Operations Weighs on Group 1 Automotive's (GPI) Profitability
Group 1's U.K. operations face EV mandates, inflation, forex volatility and intense competition, pressuring sales and margins and keeping the Zacks analyst bearish on GPI.
Weak Volumes and Core Brands Weigh on Boston Beer (SAM)
Per the Zacks analyst, Boston Beer faces weak depletion and shipment trends as Twisted Tea and Truly lose volume and share, keeping its 2026 outlook tilted toward the lower end of expectations.
Exposure to Stiff Competition, Strict Regulation Ail EverQuote (EVER)
Per the Zacks analyst, Stiff Competition for traffic and provider budgets keeps variable marketing margins volatile. Also, strict regulation raises compliance costs, which increase expenses.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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Top Analyst Reports for Eli Lilly, Palo Alto Networks & Texas Instruments

Visa Inc. V is launching an onchain credit framework that connects traditional payment streams with blockchain-based capital. By pairing VisaNet transaction data with smart contracts, Visa enables fintech partners and stablecoin card issuers to access onchain working capital. The goal is to bring onchain lending into everyday commercial activity, offering fast-growing payment businesses a programmatic, transparent way to finance daily operations.
More than 160 stablecoin-linked card programs now operate on Visa’s network, with payment volume rising nearly 200% year over year. Stablecoin settlement volume has reached a $20 billion annualized run rate, up more than 15X year over year. Meanwhile, more than $694 billion in stablecoin-denominated loans have moved through onchain lending protocols since 2020, highlighting the scale of capital already flowing through this market.
Securing working capital remains a hurdle for emerging fintechs. Card programs require continuous liquidity to meet daily settlement obligations, yet traditional lenders demand extensive operating histories and manual underwriting. Visa’s model, developed with Credit Coop, addresses this by using settlement receivables as collateral, while smart contracts automate financing and repayments. Since 2023, the platform has supported more than $2.5 billion in cumulative financed volume with zero defaults.
The initiative is about strengthening Visa’s long-term payments ecosystem rather than generating immediate revenues. More financing options help stablecoin card programs expand, steadily increasing transaction volume across VisaNet. By turning proprietary settlement feeds into an underwriting moat, Visa protects its network and ensures emerging fintech volume stays connected to its rails.
How Are Competitors Faring?
Visa’s key peers, Mastercard Incorporated MA and PayPal Holdings, Inc. PYPL, are also expanding their stablecoin and blockchain-based payment capabilities.
Mastercard expanded settlement capabilities to support regulated stablecoins like USDC and PYUSD for intraday, weekend and holiday settlement. By enabling stablecoin settlement across blockchain rails, MA gives issuers and acquirers greater flexibility in managing liquidity.
PayPal is expanding the use of its PYUSD stablecoin in commerce, allowing U.S. merchants to accept cryptocurrency while receiving settlement in local currency. PYPL’s crypto checkout can reach more than 650 million pro-crypto consumers globally, supporting broader adoption of stablecoins for everyday payments.
Visa’s Price Performance, Valuation & Estimates
Visa’s shares have risen 5.2% year to date against the industry’s 9.2% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, V trades at a forward price-to-earnings ratio of 24.79, well above the industry average of 17.72. V carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Visa’s fiscal 2026 earnings implies a 14.7% jump from the year-ago period’s level.
Image Source: Zacks Investment Research
Visa stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Visa Inc. (V) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).

Visa Is Turning Stablecoin Growth Into a Financing Opportunity

Wall Street’s cryptocurrency environment has improved meaningfully over the past few months, although the market remains highly sensitive to interest rates, Treasury yields and regulatory developments. The biggest shift has been the growing importance of institutional capital, with Bitcoin (BTC) and Ethereum (ETH) increasingly traded through regulated exchange-traded products rather than solely through traditional crypto exchanges. Figure Technology Solutions, Inc. FIGR, Chime Financial, Inc. CHYM and Paymentus Holdings, Inc. PAY are three crypto-related stocks that must be watched in this environment.
ETF Demand Returns
Crypto ETF flows have emerged as one of the clearest indicators of institutional sentiment. After periods of heavy outflows earlier in the year, demand strengthened significantly during August. Between Aug. 17 and Aug. 20, U.S. spot Bitcoin ETFs attracted about $1.6 billion, their strongest weekly inflow pace of 2026 at that point.
The momentum continued into early September. Bitcoin ETFs recorded $986.9 million of inflows during the week ended Sept. 4, while demand for Ethereum and several newer altcoin ETFs cooled. More recently, Bitcoin ETFs attracted $730.8 million in a single session, while Ethereum ETFs added $141.4 million.
This suggests that institutional investors continue to view Bitcoin as the primary digital-asset exposure, while interest in Ethereum and other cryptocurrencies remains more dependent on market momentum.
Regulation Improves the Backdrop
Regulatory developments have also become increasingly important. The proposed CLARITY Act, which seeks to establish clearer oversight of digital assets and divide responsibilities between regulators, has become a major focus for Wall Street. Although Senate action was delayed until September, the prospect of clearer rules has helped support institutional participation.
The U.S. Securities and Exchange Commission (“SEC”) has separately moved toward a more accommodating framework. In August, SEC Chair Paul Atkins outlined proposed rules that would create exemptions specifically designed for innovation and fundraising in crypto markets.
Stablecoins are another important part of the institutional story. The GENIUS Act has established a federal framework for payment stablecoins, potentially encouraging their use in payments and financial-market infrastructure.
Rates Remain the Biggest Risk
Despite the improving structural backdrop, crypto remains closely tied to Wall Street's macro environment. Bitcoin recently moved around the $80,000 level, but a stronger-than-expected August jobs report pushed Treasury yields higher and reduced expectations for near-term Federal Reserve easing.Top of FormBottom of Form
Our Choices
The stocks below have a Zacks Rank #1 (Strong Buy) or Rank #2 (Buy), and positive returns and margins. You can see the complete list of today’s Zacks #1 Rank stocks here.
Figure Technology is a fintech and blockchain-native capital marketplace, using blockchain for lending and tokenized assets, with direct crypto exposure through crypto-backed loans. FIGR’s expected earnings growth rate for the next year is 168.2%. The Zacks Consensus Estimate for its current-year earnings has improved 25.5% over the past 60 days. The company currently sports a Zacks Rank #1.
Chime Financial is a digital banking company offering payments, working to bring stablecoins (cryptocurrencies tied to the U.S. dollar) into everyday user payments. CHYM’s expected earnings growth rate for the next year is 109.6%. The Zacks Consensus Estimate for its current-year earnings has improved 36.7% over the past 60 days. The company currently carries a Zacks Rank #2.
Paymentus is a provider of cloud-based electronic bill-payment and revenue-management technology with native integration with PayPal Holdings, Inc.’s PYPL "Checkout with Crypto" feature. PAY’s expected earnings growth rate for the next year is 40.9%. The Zacks Consensus Estimate for its current-year earnings has improved 14.8% over the past 60 days. The company currently has a Zacks Rank #2.
Bottom Line
Wall Street’s crypto environment appears increasingly institutional, with ETF flows, regulatory progress and stablecoin adoption providing important support. However, cryptocurrencies remain high-beta assets, leaving Bitcoin and other digital assets vulnerable to higher yields, changing Fed expectations and broader risk-off sentiment.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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This article originally published on Zacks Investment Research (zacks.com).

3 Crypto-Exposed Stocks Riding the Institutional Crypto Wave

PayPal (NASDAQ: PYPL) was a potential buyout target, but the two companies interested in acquiring it recently abandoned their plans. In this video, I'll discuss what this means for the stock and what I'm planning to do with my PayPal shares now.
*Stock prices used were the morning prices of Sept. 3, 2026. The video was published on Sept. 6, 2026.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
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Matt Frankel, CFP® has positions in PayPal and has the following options: long January 2027 $75 calls on PayPal, long January 2027 $95 calls on PayPal, short January 2027 $135 calls on PayPal, and short January 2027 $85 calls on PayPal. The Motley Fool has positions in and recommends PayPal. The Motley Fool recommends the following options: short December 2026 $62.50 calls on PayPal. The Motley Fool has a disclosure policy.
Matthew Frankel is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

PayPal's Buyout Is Dead. Here's What I'm Doing Now.

Key Points
Solana will likely benefit tremendously from the ongoing push toward asset tokenization.
Its bases of stablecoins and tokenized bonds still pale in comparison to Ethereum's.
Other competitors could be problematic too.
Solana (CRYPTO: SOL) will probably be a much bigger network in five years, and it might be a better investment than Ethereum (CRYPTO: ETH), too. However, it'll still need to make major changes to remain competitive by late 2031.
Here's what's likely to happen between now and then.
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Tokenization could be the whole ball game
For the uninitiated, tokenization is simply a technical term for recording a real asset's ownership data as a blockchain token, allowing the asset to be managed and traded on a crypto network.
According to a report by the Citi Institute, by 2030, that organization's base case calls for 3% of all U.S. public equities to be tokenized. Citi puts that at $2.6 trillion in tokenized U.S. stocks by 2030. Today, there are only $2.6 billion in tradeable tokenized stocks, so there's very likely to be a tremendous amount of capital onboarding to various blockchains via tokenization over the next handful of years, and capturing only a sliver could be enough to make a coin grow by multiples.
And Solana is currently positioned to capture a lot of that growth, not just a sliver.
As of Sept. 3, the network held $503.1 million in tokenized equities, up from $56.9 million a year prior, and currently has a market share of 19.3% in the segment, up slightly from 18.2% at the same point in 2025. It's a natural home for tokenized trading activity thanks to its rapid transaction settlement times, often on the order of a fraction of a second, and its low transaction costs, typically under a penny.
There's more than one domain of competition
If Solana can continue to onboard more tokenized capital as well as be one of the leading places where tokenized stocks change hands -- its decentralized exchanges saw around 95% of the trading volume of the entire asset class in Q2 of this year, though that proportion has since decreased significantly -- its price will probably be dramatically higher in just a few years.
To become worth more than Ethereum, however, it'll also need to chip away at that network's lead in terms of its base of other tokenized assets as well as its base of parked stablecoins, not to mention fending off other competitors vying for the same pie. Of the $38.6 billion in tokenized assets, on Sept. 3, Ethereum held a 45% share and Solana 10.5%, so there's still a large gap to close.
But a slew of major financial institutions and fintechs, including JPMorgan Chase, Franklin Templeton, VanEck, State Street, PayPal, and Visa, have already launched tokenization initiatives on the chain, and more are likely to follow. So keep an eye on how Solana continues to forge new partnerships with those institutions while expanding its base of tokenized assets, especially stocks.
If Solana can continue to retain even a slightly smaller share of the tokenization market than it has now, by the end of 2031, the coin will be worth a few times what it is today. That's my base case for its future performance. And the upside will be larger if more challenges work out in Solana's favor.
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Citigroup is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Alex Carchidi has positions in Ethereum and Solana. The Motley Fool has positions in and recommends Ethereum, JPMorgan Chase, PayPal, Solana, and Visa. The Motley Fool recommends the following options: short December 2026 $62.50 calls on PayPal. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Where Will Solana Be in 5 Years?

Shares of Circle Internet Group, Inc. CRCL have gained 63.1% in the past month, putting the focus on whether operating progress can support the move. The latest quarter offered evidence of improving platform economics, but the stock still carries meaningful rate and crypto-market exposure.
Near-term momentum now rests on a mix of earnings execution, higher-margin platform activity and upcoming product launches. Those positives need to outweigh valuation concerns and the volatility embedded in Circle’s reserve-income model.
Circle Internet Group, Inc. Price, Consensus and EPS Surprise
CRCL’s Earnings Beat Adds Fundamental Support
Second-quarter 2026 total revenues and reserve income increased 7% year over year to $701 million. Earnings of 18 cents per share topped the Zacks Consensus Estimate by 12.5%, while adjusted EBITDA rose 8% to $143 million.
Revenue less distribution costs, or RLDC, increased 15% to $289 million. The RLDC margin expanded to 41.2% from 38.2% a year earlier, showing that better mix and platform economics helped offset lower reserve yields.
Circle Raises Guidance as Platform Mix Improves
Circle raised 2026 other-revenue guidance to $310-$330 million from $150-$170 million and lifted RLDC margin guidance to 41.7-43.7% from 38-40%. About $180 million of expected 2026 Arc token presale revenues are included in the revised outlook and remain milestone-based.
USDC held on Circle’s platform reached $12.4 billion at quarter-end, up 106% year over year. Coinbase Global, Inc. COIN is an important ecosystem reference point, with its second-quarter update showing average USDC held in Coinbase products reached an all-time high of $20 billion.
CRCL’s Arc and CPN Catalysts Add Optionality
Arc Mainnet is scheduled to launch Sept. 16, 2026. The network had more than 100 private mainnet partners and validators, while its testnet processed 502 million cumulative transactions across 2.8 million transacting wallets through June 30. Institutional validators and integrations are intended to extend Arc into tokenized-asset settlement and other capital-market workflows.
Circle Payments Network (CPN) annualized total payment volume reached about $23 billion as of July 31, up from $14.7 billion at second-quarter end. The network had 175 enrolled financial institutions across 58 countries. Circle expects to begin monetizing CPN in the second half of 2026.
Circle Still Faces Rate and Crypto Sensitivity
Reserve income represented 95.2% of second-quarter revenues, leaving results sensitive to short-term interest rates. The reserve return rate fell to 3.48% from 4.14% a year earlier, meaning circulation growth must continue to offset pressure from lower yields.
Crypto-linked activity also remains uneven. Quarter-end USDC circulation declined to $73.3 billion from $77 billion sequentially, while onchain transaction volume fell to $14.8 trillion from $21.5 trillion. PayPal Holdings, Inc. PYPL, which offers the PYUSD stablecoin, also illustrates the expanding competitive field for digital-dollar payment use cases.
CRCL’s Momentum Signals Stay Strong but Mixed
The 63.1% monthly rally is supported by favorable trading momentum and improving platform metrics, but the operating picture is not uniformly bullish. Rate exposure, softer sequential crypto activity and execution around Arc and CPN remain important checks on further gains.
CRCL currently carries a Zacks Rank #3 (Hold). Its Momentum Score of A and Growth Score of B point to favorable momentum and growth characteristics, while the Value Score of F and VGM Score of C make the profile more mixed. The combination supports a measured view after the recent surge rather than a clear-cut directional call. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).

CRCL Rallies 63.1% in a Month: Can Momentum Keep Building?

PayPal Holdings PYPL is increasingly relying on financial services to diversify its growth beyond payments and branded checkout. Management expects financial-services revenues, including credit and BNPL, to grow at least twice as fast as the overall company in 2026. In the second quarter of 2026, financial services already accounted for close to 20% of PayPal’s transaction margin.
Buy Now, Pay Later (BNPL) is emerging as a key growth driver. BNPL total payment volume (TPV) grew 26%, while monthly active accounts (MAAs) increased more than 20% in the second quarter of 2026. PayPal plans to expand the product through broader merchant distribution, additional markets and a wider product portfolio, creating more opportunities to deepen customer engagement.
Credit and debit products are also strengthening PayPal’s financial-services ecosystem. In the second quarter of 2026, Venmo Debit Card MAAs grew more than 50%, while customers using both Venmo Debit and Pay with Venmo generated more than nine times the average revenue per account (ARPA) of peer-to-peer-only users. This highlights the opportunity to generate more revenues from PayPal’s existing customer base.
However, expanding financial services comes with risks. In the second quarter of 2026, consumer and merchant net charge-off rates have increased to 4.8% and 7.6%, respectively. Credit expansion also increases liquidity requirements and makes PayPal partly dependent on external funding sources to support lending growth.
Overall, financial services could become one of PayPal’s most important long-term growth engines. The key will be balancing BNPL, credit and debit adoption with strong credit quality, capital efficiency and attractive returns.
How Are PYPL’s Competitors Faring
Affirm Holdings AFRM is a major PayPal BNPL rival. In fiscal 2026, Affirm generated $50.2 billion in GMV, up 37% year over year, and served about 28 million active consumers and 571,000 active merchants. Its rapid growth highlights strong competition in installment lending and online checkout financing across digital commerce.
Klarna KLAR also competes directly with PayPal in BNPL and consumer credit. In the second quarter of 2026, Klarna reported $36.6 billion in GMV, up 18%, while revenues rose 27% to $1.04 billion. It had 120 million active consumers and more than 1.2 million merchants, giving it substantial global distribution scale and checkout reach.
PYPL’s Price Performance, Valuation & Estimates
Shares of PayPal have gained 37.6% in the past three months compared with the broader industry and the S&P 500 Index.
From a valuation standpoint, PayPal’s shares are trading cheaply, as suggested by the Value Score of A. In terms of forward 12-month P/E, PYPL stock is trading at 10.03X, which is at a significant discount to the Zacks Financial Transaction Services industry’s 19.20X.
PayPal’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward to $5.38 over the past week. The consensus estimate for the metric indicates a year-over-year increase of 1.32%.
PayPal currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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PayPal's BNPL and Credit Growth: Can It be a Further Upside Driver?

Looking at the universe of stocks we cover at Dividend Channel, on 9/4/26, PayPal Holdings Inc (Symbol: PYPL) will trade ex-dividend, for its quarterly dividend of $0.14, payable on 9/25/26. As a percentage of PYPL's recent stock price of $54.71, this dividend works out to approximately 0.26%.
In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from PYPL is likely to continue, and whether the current estimated yield of 1.02% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of PYPL shares, versus its 200 day moving average:
Looking at the chart above, PYPL's low point in its 52 week range is $38.46 per share, with $79.215 as the 52 week high point — that compares with a last trade of $54.49.
According to the ETF Finder at ETF Channel, PYPL makes up 138.56% of the Leverage Shares 2X Long PYPL Daily ETF (Symbol: PYPG) which is trading lower by about 0.2% on the day Thursday. (see other ETFs holding PYPL).
In Thursday trading, PayPal Holdings Inc shares are currently up about 0.1% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
Further PYPL Research:

Indicator	TTM Median
P/E	9.91 13.03
Price/Sales	1.43 2.18
P/B	1.88 1.23
P/FCF	6.07 10.61

Indicator	TTM Median
ROE	24.42 11.06
ROA	6.07 1.26
ROI	16.09 7.84
Net Worth	46.22 1.01
Quick Ratio	0.00 1.42
Current Ratio	1.29 0.98

Indicator	TTM Median
Net Profit Margin	14.36 17.61
Operating Margin	17.42 25.00
Gross Margin	40.48 71.94
Return on tangible equity	54.77 12.96

Indicator	TTM Median
EPS	1.38 0.71
EPS Forecast	1.28 0.70
Revenue	8.68B 90.00M
Gross Profit	3.44B —
EBITDA	1.66B —

PayPal Holdings, Inc.

Recent quarterly and TTM performance

Valuation

Debts

Efficiency

Other ratios

Revenue