The most recent trading session ended with Paypal (PYPL) standing at $61.24, reflecting a -0.92% shift from the previouse trading day’s closing. The stock exceeded the S&P 500, which registered a loss of 1.39% for the day. Elsewhere, the Dow saw an upswing of 0.6%, while the tech-heavy Nasdaq depreciated by 2.77%.
The technology platform and digital payments company’s stock has climbed by 4.55% in the past month, exceeding the Computer and Technology sector’s gain of 1.25% and the S&P 500’s gain of 4.43%.
Investors will be eagerly watching for the performance of Paypal in its upcoming earnings disclosure. The company’s earnings report is set to be unveiled on July 30, 2024. It is anticipated that the company will report an EPS of $0.95, marking a 18.1% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $7.78 billion, reflecting a 6.77% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.14 per share and a revenue of $31.98 billion, demonstrating changes of -18.82% and +7.43%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Paypal. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. Paypal is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Paypal is presently trading at a Forward P/E ratio of 14.92. This indicates a discount in contrast to its industry’s Forward P/E of 30.44.
Investors should also note that PYPL has a PEG ratio of 1.01 right now. 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. By the end of yesterday’s trading, the Internet – Software industry had an average PEG ratio of 1.78.
The Internet – Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 93, this industry ranks in the top 37% of all industries, numbering over 250.
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.
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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