Paypal (PYPL) closed the most recent trading day at $283.33, moving +1.88% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.31%.
Heading into today, shares of the technology platform and digital payments company had gained 10.56% over the past month, outpacing the Computer and Technology sector's gain of 7.7% and the S&P 500's gain of 1.56% in that time.
PYPL will be looking to display strength as it nears its next earnings release. On that day, PYPL is projected to report earnings of $1.13 per share, which would represent year-over-year growth of 5.61%. Our most recent consensus estimate is calling for quarterly revenue of $6.3 billion, up 19.72% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.74 per share and revenue of $25.78 billion, which would represent changes of +22.16% and +20.14%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for PYPL. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PYPL is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that PYPL has a Forward P/E ratio of 58.73 right now. For comparison, its industry has an average Forward P/E of 75.68, which means PYPL is trading at a discount to the group.
Also, we should mention that PYPL has a PEG ratio of 2.66. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 3.37 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 211, which puts it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
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