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Paypal (PYPL) closed at $105.11 in the latest trading session, marking a +0.45% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.06%, and the tech-heavy Nasdaq lost 0.06%.
Prior to today's trading, shares of the technology platform and digital payments company had lost 3.8% over the past month. This has lagged the Computer and Technology sector's gain of 2.92% and the S&P 500's gain of 3.23% in that time.
Investors will be hoping for strength from PYPL as it approaches its next earnings release. On that day, PYPL is projected to report earnings of $0.70 per share, which would represent year-over-year growth of 20.69%. Meanwhile, our latest consensus estimate is calling for revenue of $4.34 billion, up 17.88% from the prior-year quarter.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $3.14 per share and revenue of $17.72 billion. These results would represent year-over-year changes of +29.75% and +14.67%, respectively.
Any recent changes to analyst estimates for PYPL should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 remained stagnant. PYPL is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, PYPL is holding a Forward P/E ratio of 33.34. This valuation marks a discount compared to its industry's average Forward P/E of 55.29.
Also, we should mention that PYPL has a PEG ratio of 1.87. 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. PYPL's industry had an average PEG ratio of 2.96 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 100, which puts it in the top 40% of all 250+ industries.