In the latest trading session, Paypal (PYPL) closed at $237.64, marking a +0.06% move from the previous day. This move outpaced the S&P 500's daily gain of 0.04%. At the same time, the Dow added 0.19%, and the tech-heavy Nasdaq gained 0.28%.
Heading into today, shares of the technology platform and digital payments company had gained 7.57% over the past month, outpacing the Computer and Technology sector's gain of 4.2% and the S&P 500's gain of 3.84% in that time.
PYPL will be looking to display strength as it nears its next earnings release. In that report, analysts expect PYPL to post earnings of $1 per share. This would mark year-over-year growth of 16.28%. Meanwhile, our latest consensus estimate is calling for revenue of $6.06 billion, up 22.25% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for PYPL. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.37% higher within the past month. PYPL is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, PYPL is holding a Forward P/E ratio of 52.62. For comparison, its industry has an average Forward P/E of 82.83, which means PYPL is trading at a discount to the group.
Also, we should mention that PYPL has a PEG ratio of 2.65. 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. Internet - Software stocks are, on average, holding a PEG ratio of 4.26 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 27% 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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