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Paypal (PYPL) Dips More Than Broader Markets: What You Should Know
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Paypal (PYPL - Free Report) closed the most recent trading day at $76.27, moving -1.83% from the previous trading session. This change lagged the S&P 500's 1.17% loss on the day. At the same time, the Dow lost 1.02%, and the tech-heavy Nasdaq lost 2.45%.
Prior to today's trading, shares of the technology platform and digital payments company had gained 4.39% over the past month. This has outpaced the Computer and Technology sector's loss of 8.27% and the S&P 500's loss of 5.25% in that time.
Investors will be hoping for strength from Paypal as it approaches its next earnings release. In that report, analysts expect Paypal to post earnings of $1.19 per share. This would mark year-over-year growth of 7.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.39 billion, up 6.85% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Paypal. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.29% higher. 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 16.23 right now. Its industry sports an average Forward P/E of 41.93, 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. 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 was holding an average PEG ratio of 1.83 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 68, putting it in the top 27% 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.
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Paypal (PYPL) Dips More Than Broader Markets: What You Should Know
Paypal (PYPL - Free Report) closed the most recent trading day at $76.27, moving -1.83% from the previous trading session. This change lagged the S&P 500's 1.17% loss on the day. At the same time, the Dow lost 1.02%, and the tech-heavy Nasdaq lost 2.45%.
Prior to today's trading, shares of the technology platform and digital payments company had gained 4.39% over the past month. This has outpaced the Computer and Technology sector's loss of 8.27% and the S&P 500's loss of 5.25% in that time.
Investors will be hoping for strength from Paypal as it approaches its next earnings release. In that report, analysts expect Paypal to post earnings of $1.19 per share. This would mark year-over-year growth of 7.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.39 billion, up 6.85% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Paypal. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.29% higher. 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 16.23 right now. Its industry sports an average Forward P/E of 41.93, 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. 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 was holding an average PEG ratio of 1.83 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 68, putting it in the top 27% 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.