Paypal (PYPL) closed at $85.75 in the latest trading session, marking a +1.77% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.21%. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, added 0.01%.
Prior to today's trading, shares of the technology platform and digital payments company had lost 9.07% over the past month. This has was narrower than the Computer and Technology sector's loss of 11.89% and the S&P 500's loss of 9.7% in that time.
Investors will be hoping for strength from Paypal as it approaches its next earnings release. On that day, Paypal is projected to report earnings of $0.95 per share, which would represent a year-over-year decline of 14.41%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.84 billion, up 10.58% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.93 per share and revenue of $27.91 billion. These totals would mark changes of -14.57% and +10.01%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Paypal. These recent revisions tend to reflect the evolving nature of short-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.91% higher. Paypal currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Paypal is holding a Forward P/E ratio of 21.43. Its industry sports an average Forward P/E of 43.07, so we one might conclude that Paypal is trading at a discount comparatively.
Meanwhile, PYPL's PEG ratio is currently 1.32. 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. The Internet - Software was holding an average PEG ratio of 2.27 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% 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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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
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