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Paypal (PYPL) Gains But Lags Market: What You Should Know
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Paypal (PYPL - Free Report) closed at $87.18 in the latest trading session, marking a +1.29% move from the prior day. The stock lagged the S&P 500's daily gain of 2.59%. Meanwhile, the Dow gained 2.66%, and the Nasdaq, a tech-heavy index, added 0.07%.
Heading into today, shares of the technology platform and digital payments company had lost 5.55% over the past month, outpacing the Computer and Technology sector's loss of 11.97% and the S&P 500's loss of 9.22% in that time.
Wall Street will be looking for positivity from Paypal as it approaches its next earnings report date. In that report, analysts expect Paypal to post earnings of $0.84 per share. This would mark a year-over-year decline of 24.32%. Meanwhile, our latest consensus estimate is calling for revenue of $6.84 billion, up 10.58% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.93 per share and revenue of $27.91 billion. These totals would mark changes of -14.57% and +10.01%, respectively, from last 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 0.91% higher. Paypal is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Paypal's current valuation metrics, including its Forward P/E ratio of 21.89. This represents a discount compared to its industry's average Forward P/E of 44.3.
Meanwhile, PYPL's PEG ratio is currently 1.35. 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. The Internet - Software industry currently had an average PEG ratio of 2.31 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Paypal (PYPL) Gains But Lags Market: What You Should Know
Paypal (PYPL - Free Report) closed at $87.18 in the latest trading session, marking a +1.29% move from the prior day. The stock lagged the S&P 500's daily gain of 2.59%. Meanwhile, the Dow gained 2.66%, and the Nasdaq, a tech-heavy index, added 0.07%.
Heading into today, shares of the technology platform and digital payments company had lost 5.55% over the past month, outpacing the Computer and Technology sector's loss of 11.97% and the S&P 500's loss of 9.22% in that time.
Wall Street will be looking for positivity from Paypal as it approaches its next earnings report date. In that report, analysts expect Paypal to post earnings of $0.84 per share. This would mark a year-over-year decline of 24.32%. Meanwhile, our latest consensus estimate is calling for revenue of $6.84 billion, up 10.58% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.93 per share and revenue of $27.91 billion. These totals would mark changes of -14.57% and +10.01%, respectively, from last 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 0.91% higher. Paypal is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Paypal's current valuation metrics, including its Forward P/E ratio of 21.89. This represents a discount compared to its industry's average Forward P/E of 44.3.
Meanwhile, PYPL's PEG ratio is currently 1.35. 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. The Internet - Software industry currently had an average PEG ratio of 2.31 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.