In the latest trading session, Paypal (PYPL) closed at $103.59, marking a +1.81% move from the previous day. The stock outpaced the S&P 500's daily gain of 1%.
Coming into today, shares of the technology platform and digital payments company had lost 4.48% in the past month. In that same time, the Computer and Technology sector lost 0.45%, while the S&P 500 lost 1.22%.
Investors will be hoping for strength from PYPL as it approaches its next earnings release, which is expected to be October 23, 2019. On that day, PYPL is projected to report earnings of $0.69 per share, which would represent year-over-year growth of 18.97%. Our most recent consensus estimate is calling for quarterly revenue of $4.34 billion, up 17.88% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.13 per share and revenue of $17.72 billion. These totals would mark changes of +29.34% and +14.66%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for PYPL. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.54% lower. PYPL currently has a Zacks Rank of #3 (Hold).
Investors should also note PYPL's current valuation metrics, including its Forward P/E ratio of 32.52. For comparison, its industry has an average Forward P/E of 55.75, which means PYPL is trading at a discount to the group.
Also, we should mention that PYPL has a PEG ratio of 1.77. 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 currently had an average PEG ratio of 2.7 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 66, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
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