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Paypal (PYPL) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Paypal (PYPL) closed at $270.33, marking a +0.74% move from the previous day. This change outpaced the S&P 500's 0.34% gain on the day.

Coming into today, shares of the technology platform and digital payments company had lost 2.89% in the past month. In that same time, the Computer and Technology sector lost 2.7%, while the S&P 500 lost 0.12%.

Investors will be hoping for strength from PYPL as it approaches its next earnings release. The company is expected to report EPS of $1.07, unchanged from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.22 billion, up 13.96% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.73 per share and revenue of $25.77 billion, which would represent changes of +21.91% and +20.1%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for PYPL. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. PYPL is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note PYPL's current valuation metrics, including its Forward P/E ratio of 56.78. For comparison, its industry has an average Forward P/E of 63.89, which means PYPL is trading at a discount to the group.

Also, we should mention that PYPL has a PEG ratio of 2.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 4.3 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 179, putting it in the bottom 30% 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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