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Paypal (PYPL) Stock Sinks As Market Gains: What You Should Know
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Paypal (PYPL - Free Report) closed at $68.76 in the latest trading session, marking a -0.28% move from the prior day. This change lagged the S&P 500's 0.1% gain on the day. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.09%.
Prior to today's trading, shares of the technology platform and digital payments company had lost 14.49% over the past month. This has lagged the Computer and Technology sector's loss of 5.51% and the S&P 500's loss of 3.6% 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 $1.19 per share, which would represent year-over-year growth of 7.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.39 billion, up 6.76% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.08 per share and revenue of $27.52 billion, which would represent changes of -11.3% and +8.47%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Paypal. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.58% higher. Paypal currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Paypal currently has a Forward P/E ratio of 16.89. This valuation marks a discount compared to its industry's average Forward P/E of 44.43.
We can also see that PYPL currently has a PEG ratio of 1.07. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.1 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% 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.
To follow PYPL in the coming trading sessions, be sure to utilize Zacks.com.
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Paypal (PYPL) Stock Sinks As Market Gains: What You Should Know
Paypal (PYPL - Free Report) closed at $68.76 in the latest trading session, marking a -0.28% move from the prior day. This change lagged the S&P 500's 0.1% gain on the day. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.09%.
Prior to today's trading, shares of the technology platform and digital payments company had lost 14.49% over the past month. This has lagged the Computer and Technology sector's loss of 5.51% and the S&P 500's loss of 3.6% 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 $1.19 per share, which would represent year-over-year growth of 7.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.39 billion, up 6.76% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.08 per share and revenue of $27.52 billion, which would represent changes of -11.3% and +8.47%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Paypal. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.58% higher. Paypal currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Paypal currently has a Forward P/E ratio of 16.89. This valuation marks a discount compared to its industry's average Forward P/E of 44.43.
We can also see that PYPL currently has a PEG ratio of 1.07. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.1 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% 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.
To follow PYPL in the coming trading sessions, be sure to utilize Zacks.com.