Paypal (PYPL) closed at $170.87 in the latest trading session, marking a -0.94% move from the prior day. This change was narrower than the S&P 500’s daily loss of 2.42%. Meanwhile, the Dow lost 2.84%, and the Nasdaq, a tech-heavy index, lost 2.59%.
Heading into today, shares of the technology platform and digital payments company had gained 15.94% over the past month, outpacing the Computer and Technology sector’s gain of 7.27% and the S&P 500’s gain of 4.5% in that time.
Wall Street will be looking for positivity from PYPL as it approaches its next earnings report date. On that day, PYPL is projected to report earnings of $0.84 per share, which would represent a year-over-year decline of 2.33%. Meanwhile, our latest consensus estimate is calling for revenue of $4.94 billion, up 14.65% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.33 per share and revenue of $20.06 billion, which would represent changes of +7.42% and +12.86%, respectively, from the prior year.
Any recent changes to analyst estimates for PYPL should also be noted by investors. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% lower. PYPL is currently a Zacks Rank #3 (Hold).
Digging into valuation, PYPL currently has a Forward P/E ratio of 51.81. This represents a discount compared to its industry’s average Forward P/E of 55.06.
Also, we should mention that PYPL has a PEG ratio of 3.48. 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. Internet – Software stocks are, on average, holding a PEG ratio of 3.61 based on yesterday’s closing prices.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 44, which puts it in the top 18% 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.
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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