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) Dips More Than Broader Markets: What You Should Know
Read MoreHide Full Article
Paypal (PYPL - Free Report) closed at $83.09 in the latest trading session, marking a -1.69% move from the prior day. This change lagged the S&P 500's daily loss of 0.65%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, added 0.07%.
Prior to today's trading, shares of the technology platform and digital payments company had lost 13.45% over the past month. This has lagged the Computer and Technology sector's loss of 13.29% and the S&P 500's loss of 11.07% in that time.
Paypal will be looking to display strength as it nears its next earnings release. On that day, Paypal is projected to report earnings of $0.95 per share, which would represent a year-over-year decline of 14.41%. Our most recent consensus estimate is calling for quarterly revenue of $6.84 billion, up 10.58% from the year-ago period.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $3.93 per share and revenue of $27.91 billion. These results would represent year-over-year changes of -14.57% and +10.01%, respectively.
It is also important to note the recent changes to analyst estimates for Paypal. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% higher. Paypal is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Paypal is currently trading at a Forward P/E ratio of 21.5. This valuation marks a discount compared to its industry's average Forward P/E of 42.35.
Also, we should mention that PYPL has a PEG ratio of 1.33. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 2.04 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% 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.
To follow PYPL in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Paypal (PYPL) Dips More Than Broader Markets: What You Should Know
Paypal (PYPL - Free Report) closed at $83.09 in the latest trading session, marking a -1.69% move from the prior day. This change lagged the S&P 500's daily loss of 0.65%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, added 0.07%.
Prior to today's trading, shares of the technology platform and digital payments company had lost 13.45% over the past month. This has lagged the Computer and Technology sector's loss of 13.29% and the S&P 500's loss of 11.07% in that time.
Paypal will be looking to display strength as it nears its next earnings release. On that day, Paypal is projected to report earnings of $0.95 per share, which would represent a year-over-year decline of 14.41%. Our most recent consensus estimate is calling for quarterly revenue of $6.84 billion, up 10.58% from the year-ago period.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $3.93 per share and revenue of $27.91 billion. These results would represent year-over-year changes of -14.57% and +10.01%, respectively.
It is also important to note the recent changes to analyst estimates for Paypal. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% higher. Paypal is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Paypal is currently trading at a Forward P/E ratio of 21.5. This valuation marks a discount compared to its industry's average Forward P/E of 42.35.
Also, we should mention that PYPL has a PEG ratio of 1.33. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 2.04 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% 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.
To follow PYPL in the coming trading sessions, be sure to utilize Zacks.com.