In the latest trading session, Paypal (PYPL) closed at $177.21, marking a -0.12% move from the previous day. This change lagged the S&P 500's 0.45% gain on the day. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.52%.
Coming into today, shares of the technology platform and digital payments company had gained 13.17% in the past month. In that same time, the Computer and Technology sector gained 5.91%, while the S&P 500 gained 2.08%.
Investors will be hoping for strength from PYPL as it approaches its next earnings release, which is expected to be July 29, 2020. The company is expected to report EPS of $0.84, down 2.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.94 billion, up 14.65% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.32 per share and revenue of $20.06 billion, which would represent changes of +7.1% and +12.86%, respectively, from the prior year.
Any recent changes to analyst estimates for PYPL should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.19% higher. PYPL currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, PYPL is holding a Forward P/E ratio of 53.41. This valuation marks a discount compared to its industry's average Forward P/E of 67.19.
It is also worth noting that PYPL currently has a PEG ratio of 3.59. 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 industry currently had an average PEG ratio of 3.87 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 23% 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.
You can find more information on all of these metrics, and much more, on 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.
Zacks Investment Research