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.
The Zacks Industry Rank gauges the strength of our individual 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.
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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
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