Updated with comments from Jim Cramer.

PayPal (PYPL) - Get Report is set to report its fourth-quarter earnings after the close on Wednesday, and analysts are ready to get more details on the newly independent company.

Last quarter, PayPal brought in $2.26 billion in revenue, up 14% over 2014, and earnings of 31 cents a share. For this quarter, analysts are expecting revenue of $2.5 billion with earnings of 35 cents a share, according to Thomson Reuters estimates.

In October, PayPal management provided guidance for the full financial year of 2015, anticipating revenue to grow between 15% and 18% on an FX neutral, non-GAAP pro forma basis, and for earnings per share to come in between $1.23 and $1.27.

Since it was spun off from eBay (EBAY) - Get Report last July, PayPal's shares have fallen about 20%, likely due to increased competition from companies like Apple (AAPL) - Get Report , Google (GOOG) - Get Report , Visa (V) - Get Report , and Walmart (WMT) - Get Report , who are all experimenting with digital payments. PayPal will have to convince investors that it's still the leader in its space and can handle the added pressure.

PayPal is a holding in Jim Cramer's Action Alerts PLUS charitable trust portfolio. "Dan Schulman is a terrific manager and I've sat down him and really like everything he has to say," said Cramer. "Second, I think it is the credit card for the millennial generation. So even though the stock has come down from $39 to $31 and people didn't like the last quarter, it represents great value on a takeover basis. I would never recommend a stock on a takeover basis unless it also had decent fundamentals."

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Here's what analysts are saying:

TST Recommends

Bob Peck, SunTrust (Buy, $38)

Management has said that it will lay out its capital allocation strategy on the 4Q earnings call. We would not be surprised to see the company announce a share repurchase program. The company had $6.7b in cash as of 3Q ($2.4b domestic) and no debt (Xoom will consume $0.9b in 4Q vs FCF of perhaps ~$0.6b). We note that a $500m repurchase adds $0.02 to 2016 EPS. We also note that falling valuations, public and private, could allow for stepped up M&A, which is of course already a key part of the company's strategy.

Steve Weinstein, ITG Investment Research

Management has said that it will lay out its capital allocation strategy on the 4Q earnings call. We would not be surprised to see the company announce a share repurchase program. The company had $6.7b in cash as of 3Q ($2.4b domestic) and no debt (Xoom will consume $0.9b in 4Q vs FCF of perhaps ~$0.6b). We note that a $500m repurchase adds $0.02 to 2016 EPS. We also note that falling valuations, public and private, could allow for stepped up M&A, which is of course already a key part of the company's strategy.

Youssef Squali, Cantor Fitzgerald (Buy, $45)

We expect PayPal to report healthy 4Q results, in line with Street expectations for mid-teens revenue growth and mid-twenties EBITDA margins. MasterCard's intra-quarter update has positive read-throughs for PayPal. With management's focus on the online and in-apps opportunities, and with sustained growth in active users and deeper penetration of the merchant base, PayPal should continue to grow TPV and revenue at a healthy double-digits rate for several more years, in our view.

Robert Napoli, William Blair (Outperform)

We remain attracted to PayPal's solid market position, exposure to strong secular tailwinds (e-commerce and shift to electronic forms of payment), and management's clear success in diversify the company beyond the legacy eBay marketplace business. Further, we continue to believe that increasing customer usage from two to three transactions per month to two to four per week remains one of the largest opportunities at PayPal. We believe PayPal's 173 million active accounts and increasing usage per account are a testament to consumers' trust of PayPal and the value PayPal brings to the payments industry. We believe management's medium-term targets are achievable and we remain attracted to PayPal's strong balance sheet and cash flow. Valuation seems attractive as shares trade in line with slower-growing financial technology peers; PayPal trades at 10.6 times 2016 EV to EBITDA (versus its peers' 11.6 times) and 8.5 times 2017 (versus its peers' 10.1 times).

Mark Palmer, BTIG (Buy, $48)

The most frequently voiced qualm we have heard from investors about PayPal Holdings since its spin-off from eBay in July is that the company's growth trajectory could flatten somewhat as a result of competition in the payments space. While the macro concerns that have roiled the equity market have contributed to PayPal's 20.4% decline since July 20 - including 10.7% since the beginning of the year - we think the attention paid to Apple Pay, Samsung Pay and Android Pay as well as the news that emerged last month that Walmart had launched a mobile payments service and Target is developing one as well have been the primary drivers of the stock's weakness.

However, PayPal has yet to show any signs that its efforts to capture a larger share of the $2.5tn global online payments market - as well as an off-line market that is significantly larger - have yielded diminishing returns.

With that said, it is clear that investors are regarding PayPal as a "show me" story and will do so until the company has developed enough of a stand-alone track record to allay their concerns about the competitive environment. As such, we believe the most important "catalysts" for the stock for now will be its quarterly earnings reports, and that the market reaction to those results may be outsized as a consequence.