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Paypal (PYPL) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Paypal (PYPL - Free Report) closed at $75.29, marking a -0.86% move from the previous day. This change lagged the S&P 500's 0.37% gain on the day. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 0.62%.
Coming into today, shares of the technology platform and digital payments company had lost 0.46% in the past month. In that same time, the Computer and Technology sector gained 10.71%, while the S&P 500 gained 3.71%.
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 $1.20 per share. This would mark year-over-year growth of 36.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.97 billion, up 7.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.89 per share and revenue of $29.2 billion, which would represent changes of +18.4% and +6.12%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Paypal. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.52% lower within the past month. Paypal currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Paypal is currently trading at a Forward P/E ratio of 15.53. Its industry sports an average Forward P/E of 43.25, 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 0.89. 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. PYPL's industry had an average PEG ratio of 1.74 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 51, putting it in the top 21% 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) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Paypal (PYPL - Free Report) closed at $75.29, marking a -0.86% move from the previous day. This change lagged the S&P 500's 0.37% gain on the day. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 0.62%.
Coming into today, shares of the technology platform and digital payments company had lost 0.46% in the past month. In that same time, the Computer and Technology sector gained 10.71%, while the S&P 500 gained 3.71%.
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 $1.20 per share. This would mark year-over-year growth of 36.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.97 billion, up 7.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.89 per share and revenue of $29.2 billion, which would represent changes of +18.4% and +6.12%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Paypal. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.52% lower within the past month. Paypal currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Paypal is currently trading at a Forward P/E ratio of 15.53. Its industry sports an average Forward P/E of 43.25, 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 0.89. 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. PYPL's industry had an average PEG ratio of 1.74 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 51, putting it in the top 21% 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.