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In the latest market close, Paypal (PYPL) reached $65.25, with a +0.15% movement compared to the previous day. This move lagged the S&P 500's daily gain of 0.55%. Elsewhere, the Dow saw an upswing of 1.01%, while the tech-heavy Nasdaq depreciated by 0.14%.
The technology platform and digital payments company's stock has dropped by 8.3% in the past month, falling short of the Business Services sector's loss of 5.96% and the S&P 500's loss of 6.22%.
Market participants will be closely following the financial results of Paypal in its upcoming release. The company is forecasted to report an EPS of $1.16, showcasing a 17.14% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $7.82 billion, up 1.57% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.02 per share and a revenue of $32.98 billion, indicating changes of +7.96% and +3.72%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Paypal. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. As of now, Paypal holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Paypal is holding a Forward P/E ratio of 12.98. This indicates a discount in contrast to its industry's Forward P/E of 14.7.
Investors should also note that PYPL has a PEG ratio of 1.11 right now. 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. The Financial Transaction Services was holding an average PEG ratio of 1.4 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 130, positioning it in the bottom 49% of all 250+ industries.