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The latest trading session saw Paypal (PYPL) ending at $70.97, denoting a +1.11% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 1.77%. Elsewhere, the Dow saw an upswing of 1.42%, while the tech-heavy Nasdaq appreciated by 2.28%.
The technology platform and digital payments company's stock has dropped by 6.35% in the past month, exceeding the Business Services sector's loss of 7.87% and lagging the S&P 500's loss of 5.73%.
Investors will be eagerly watching for the performance of Paypal in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.16, signifying a 17.14% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $7.82 billion, showing a 1.57% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.02 per share and a revenue of $32.98 billion, representing changes of +7.96% and +3.72%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Paypal. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. Paypal presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Paypal currently has a Forward P/E ratio of 13.98. This valuation marks a discount compared to its industry's average Forward P/E of 15.25.
It's also important to note that PYPL currently trades at a PEG ratio of 1.19. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 1.41.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 133, putting it in the bottom 48% of all 250+ industries.