PayPal (PYPL) has emerged as one of the largest online payment solutions providers on the back of its strong product portfolio and two-sided platform that enables it to offer smooth and secure transaction facility to both customers and merchants.PayPal’s second quarter results were driven by strong growth in total payments volume. Solid performance by Venmo contributed well to the TPV growth. Growing transaction revenues drove the top-line growth. Solid momentum across peer to peer, merchant services and PayPal Checkout experiences remains a tailwind. PayPal’s growing traction in the United States is a major positive. Strengthening customer engagement on the company’s platform is expected to continue driving the top-line growth in the near term. Growing momentum in cryptocurrency space is also a positive. PayPal continues to forge strategic partnerships. Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Abercrombie & Fitch Co. (ANF) operates as a specialty retailer of premium, high-quality casual apparel for men, women, and kids through a network of approximately 759 stores across North America, Europe, Asia and the Middle East, as well as various e-commerce sites. Abercrombie’s shares have increased and outperformed the industry year-to-date. The stock’s bullish run on the bourses can be attributable to continued momentum across its both brands, which bolstered sales in first-quarter fiscal 2024. The company witnessed strong sales growth during for each of its brands, particularly the Abercrombie brand. Markedly, the company reported sturdy first-quarter fiscal 2024 results. Management anticipates net sales for fiscal 2024 to increase 10% year over year from $4.3 billion. For the second quarter of fiscal 2024, net sales are projected to be up mid-teens year over year and versus our estimate of a 13.8% rise.Abercrombie has not only earned a Growth Score of A based on a number of factors, but it also carries a Zacks Rank #1 because of positive earnings estimate revisions.This combination indicates that Abercrombie is a potential outperformer and a solid choice for growth investors.
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