PayPal: Well Structured To Continue Aggressive Buybacks
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Andres Veurink298 FollowersFollow5ShareSavePlay(14min)CommentsSummaryPayPal is my top pick for 2026, rated Strong Buy due to expanding margins, robust buybacks, and a newly introduced dividend.PYPL trades at a deep discount to its growth, with 30% YoY EPS growth and forward P/E near 11.5x, despite strong Q3 results and raised guidance.Shareholder returns remain aggressive: $6B in annual buybacks, dividend initiation, and core free cash flow supporting continued capital allocation.Loan origination and value-added services are driving new revenue streams, helping offset transaction volume declines and supporting margin expansion. JHVEPhoto/iStock Editorial via Getty Images Investment Thesis Faced with the question of picking only one stock to go into 2026 with I think it would have to be PayPal (PYPL) without a doubt. The 2025 performance has left aThis article was written byAndres Veurink298 FollowersFollowMy name is Andres Veurink and I have been in the financial markets for over a decade at this point, spending the majority of that in a hedge fund here in Rotterdam, working my way up as an analyst. My work relfect rigourious standards as I myself have a very high standard as to what I invest my money in. My preferred sectors to follow are tech, specifically SaaS and cloud business. I find these offer incredible growth opportunities and are also very fun to research and follow. It's a very active space with plenty of news coming out each week. Work is my own thoughs and research is done only by myself.Analyst’s Disclosure:I/we have a beneficial long position in the shares of PYPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.