Paypal (PYPL) ended the recent trading session at $86.78, demonstrating a +1.56% swing from the preceding day’s closing price. The stock’s change was more than the S&P 500’s daily loss of 0.09%. Elsewhere, the Dow saw an upswing of 0.04%, while the tech-heavy Nasdaq depreciated by 0.1%.
The technology platform and digital payments company’s stock has climbed by 0.84% in the past month, falling short of the Computer and Technology sector’s gain of 3.04% and outpacing the S&P 500’s loss of 0.29%.
The investment community will be closely monitoring the performance of Paypal in its forthcoming earnings report. The company is expected to report EPS of $1.10, down 25.68% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.24 billion, up 2.66% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.57 per share and a revenue of $31.68 billion, representing changes of -10.39% and +6.4%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Paypal. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% downward. As of now, Paypal holds a Zacks Rank of #3 (Hold).
With respect to valuation, Paypal is currently being traded at a Forward P/E ratio of 18.71. This denotes a discount relative to the industry’s average Forward P/E of 32.61.
One should further note that PYPL currently holds a PEG ratio of 1.56. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The Internet – Software industry had an average PEG ratio of 2.29 as trading concluded yesterday.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 31, which puts it in the top 13% of all 250+ industries.
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