The latest trading session saw Paypal (PYPL – Free Report) ending at $88.14, denoting a -0.12% adjustment from its last day’s close. This change lagged the S&P 500’s daily loss of 0.04%. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Heading into today, shares of the technology platform and digital payments company had gained 1.94% over the past month, lagging the Computer and Technology sector’s gain of 5.93% and outpacing the S&P 500’s gain of 1.05% in that time.
Market participants will be closely following the financial results of Paypal in its upcoming release. The company’s upcoming EPS is projected at $1.11, signifying a 25% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $8.23 billion, up 2.56% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $4.57 per share and a revenue of $31.66 billion, demonstrating changes of -10.39% and +6.35%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Paypal. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.06% upward. Paypal currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Paypal has a Forward P/E ratio of 19.32 right now. This indicates a discount in contrast to its industry’s Forward P/E of 33.27.
Investors should also note that PYPL has a PEG ratio of 1.61 right now. 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. PYPL’s industry had an average PEG ratio of 2.4 as of yesterday’s close.
The Internet – Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 28, placing it within the top 12% of over 250 industries.
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.
Don’t forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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