In the latest trading session, Paypal (PYPL) closed at $64.04, marking a -1.51% move from the previous day. This change lagged the S&P 500's 0.38% loss on the day. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq lost 4.19%.
Coming into today, shares of the technology platform and digital payments company had lost 1.34% in the past month. In that same time, the Computer and Technology sector gained 11.14%, while the S&P 500 gained 3.78%.
Investors will be hoping for strength from Paypal as it approaches its next earnings release. In that report, analysts expect Paypal to post earnings of $1.16 per share. This would mark year-over-year growth of 24.73%. Meanwhile, our latest consensus estimate is calling for revenue of $7.26 billion, up 6.72% from the prior-year quarter.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $4.95 per share and revenue of $29.54 billion. These results would represent year-over-year changes of +19.85% and +7.34%, respectively.
Any recent changes to analyst estimates for Paypal should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.1% higher. Paypal is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Paypal is currently trading at a Forward P/E ratio of 13.14. This valuation marks a discount compared to its industry's average Forward P/E of 42.7.
Also, we should mention that PYPL has a PEG ratio of 0.8. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PYPL's industry had an average PEG ratio of 1.77 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 107, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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