Paypal (PYPL) closed the most recent trading day at $163.83, moving +1.62% from the previous trading session. This change outpaced the S&P 500's 0.36% loss on the day. Meanwhile, the Dow lost 0.65%, and the Nasdaq, a tech-heavy index, added 0.15%.
Investors will be hoping for strength from PYPL as it approaches its next earnings release. In that report, analysts expect PYPL to post earnings of $0.86 per share. This would mark no growth from the year-ago period. Our most recent consensus estimate is calling for quarterly revenue of $4.92 billion, up 14.33% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.31 per share and revenue of $20.02 billion. These totals would mark changes of +6.77% and +12.63%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for PYPL. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.18% lower within the past month. PYPL is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that PYPL has a Forward P/E ratio of 48.73 right now. Its industry sports an average Forward P/E of 56.32, so we one might conclude that PYPL is trading at a discount comparatively.
It is also worth noting that PYPL currently has a PEG ratio of 3.27. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PYPL's industry had an average PEG ratio of 3.51 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 47, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
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