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Here's Why Paypal (PYPL) Gained But Lagged the Market Today

The most recent trading session ended with Paypal (PYPL) standing at $62.79, reflecting a +0.76% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.87%. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, added 1.11%.

The the stock of technology platform and digital payments company has fallen by 3.8% in the past month, leading the Computer and Technology sector's loss of 5.98% and the S&P 500's loss of 3.97%.

Market participants will be closely following the financial results of Paypal in its upcoming release. The company plans to announce its earnings on April 30, 2024. The company is predicted to post an EPS of $1.20, indicating a 2.56% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $7.5 billion, up 6.6% from the prior-year quarter.

PYPL's full-year Zacks Consensus Estimates are calling for earnings of $5.10 per share and revenue of $31.94 billion. These results would represent year-over-year changes of 0% and +7.28%, respectively.


Any recent changes to analyst estimates for Paypal should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, the Zacks Consensus EPS estimate has moved 0.45% higher. Paypal is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that Paypal has a Forward P/E ratio of 12.21 right now. This represents a discount compared to its industry's average Forward P/E of 27.89.

Meanwhile, PYPL's PEG ratio is currently 1.09. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry had an average PEG ratio of 1.75 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 54, this industry ranks in the top 22% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report

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