Paypal (PYPL) ended the recent trading session at $80.56, demonstrating a -0.47% swing from the preceding day’s closing price. This move lagged the S&P 500’s daily loss of 0.18%. Elsewhere, the Dow lost 0.8%, while the tech-heavy Nasdaq added 0.27%.
Coming into today, shares of the technology platform and digital payments company had gained 5.45% in the past month. In that same time, the Computer and Technology sector gained 6.6%, while the S&P 500 gained 4.46%.
Market participants will be closely following the financial results of Paypal in its upcoming release. The company plans to announce its earnings on October 29, 2024. The company’s upcoming EPS is projected at $1.08, signifying a 16.92% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $7.86 billion, reflecting a 5.93% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.44 per share and revenue of $31.93 billion, which would represent changes of -12.94% and +7.25%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Paypal. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection has moved 0.54% higher. Paypal currently has a Zacks Rank of #3 (Hold).
Investors should also note Paypal’s current valuation metrics, including its Forward P/E ratio of 18.23. This expresses a discount compared to the average Forward P/E of 32.33 of its industry.
We can additionally observe that PYPL currently boasts a PEG ratio of 1.47. 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. The Internet – Software industry had an average PEG ratio of 2.19 as trading concluded yesterday.
The Internet – Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 64, finds itself in the top 26% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
