We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Paypal (PYPL) Gains As Market Dips: What You Should Know
Read MoreHide Full Article
Paypal (PYPL - Free Report) closed the most recent trading day at $71.43, moving +1.36% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.92%. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq added 0.05%.
Heading into today, shares of the technology platform and digital payments company had lost 4.41% over the past month, lagging the Computer and Technology sector's loss of 0.73% and the S&P 500's loss of 1% in that time.
Investors will be hoping for strength from Paypal as it approaches its next earnings release, which is expected to be August 2, 2022. On that day, Paypal is projected to report earnings of $0.86 per share, which would represent a year-over-year decline of 25.22%. Our most recent consensus estimate is calling for quarterly revenue of $6.81 billion, up 9.21% from the year-ago period.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $3.94 per share and revenue of $28.26 billion. These results would represent year-over-year changes of -14.35% and +11.39%, respectively.
Investors might also notice recent changes to analyst estimates for Paypal. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 0.37% lower. Paypal is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, Paypal currently has a Forward P/E ratio of 17.89. Its industry sports an average Forward P/E of 44.64, so we one might conclude that Paypal is trading at a discount comparatively.
We can also see that PYPL currently has a PEG ratio of 1.03. 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 was holding an average PEG ratio of 2.41 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 41% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Paypal (PYPL) Gains As Market Dips: What You Should Know
Paypal (PYPL - Free Report) closed the most recent trading day at $71.43, moving +1.36% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.92%. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq added 0.05%.
Heading into today, shares of the technology platform and digital payments company had lost 4.41% over the past month, lagging the Computer and Technology sector's loss of 0.73% and the S&P 500's loss of 1% in that time.
Investors will be hoping for strength from Paypal as it approaches its next earnings release, which is expected to be August 2, 2022. On that day, Paypal is projected to report earnings of $0.86 per share, which would represent a year-over-year decline of 25.22%. Our most recent consensus estimate is calling for quarterly revenue of $6.81 billion, up 9.21% from the year-ago period.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $3.94 per share and revenue of $28.26 billion. These results would represent year-over-year changes of -14.35% and +11.39%, respectively.
Investors might also notice recent changes to analyst estimates for Paypal. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 0.37% lower. Paypal is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, Paypal currently has a Forward P/E ratio of 17.89. Its industry sports an average Forward P/E of 44.64, so we one might conclude that Paypal is trading at a discount comparatively.
We can also see that PYPL currently has a PEG ratio of 1.03. 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 was holding an average PEG ratio of 2.41 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 41% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.