Paypal (PYPL) closed the most recent trading day at $116.98, moving -0.77% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.9%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq lost 0.93%.
Coming into today, shares of the technology platform and digital payments company had gained 7.42% in the past month. In that same time, the Computer and Technology sector gained 6.54%, while the S&P 500 gained 3.3%.
Investors will be hoping for strength from PYPL as it approaches its next earnings release, which is expected to be January 29, 2020. The company is expected to report EPS of $0.83, up 20.29% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.94 billion, up 16.96% from the year-ago period.
Investors should also note any recent changes to analyst estimates for PYPL. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% lower. PYPL is currently a Zacks Rank #4 (Sell).
Digging into valuation, PYPL currently has a Forward P/E ratio of 33.86. For comparison, its industry has an average Forward P/E of 58.06, which means PYPL is trading at a discount to the group.
Investors should also note that PYPL has a PEG ratio of 1.83 right now. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.69 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow PYPL in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.