Paypal (PYPL) closed the most recent trading day at $73.12, moving +1.88% from the previous trading session. This change outpaced the S&P 500's 0.29% loss on the day. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq depreciated by 0.31%.

The technology platform and digital payments company's stock has dropped by 0.17% in the past month, exceeding the Computer and Technology sector's loss of 1.17% and lagging the S&P 500's gain of 1.57%.

The investment community will be paying close attention to the earnings performance of Paypal in its upcoming release. The company's upcoming EPS is projected at $1.06, signifying a 18.46% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $7.85 billion, indicating a 5.8% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.42 per share and a revenue of $31.94 billion, signifying shifts of -13.33% and +7.29%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Paypal. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Paypal presently features a Zacks Rank of #1 (Strong Buy).

Investors should also note Paypal's current valuation metrics, including its Forward P/E ratio of 16.25. This denotes a discount relative to the industry's average Forward P/E of 31.23.

We can additionally observe that PYPL currently boasts a PEG ratio of 1.02. 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 had an average PEG ratio of 2.01 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 74, placing it within the top 30% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report

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