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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 $63.56 in the latest trading session, marking a -0.27% move from the prior day. This change lagged the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq lost 8.94%.
Prior to today's trading, shares of the technology platform and digital payments company had gained 2.38% over the past month. This has lagged the Computer and Technology sector's gain of 10.86% and the S&P 500's gain of 5.41% in that time.
Paypal will be looking to display strength as it nears its next earnings release. In that report, analysts expect Paypal to post earnings of $1.16 per share. This would mark year-over-year growth of 24.73%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.27 billion, up 6.78% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.95 per share and revenue of $29.55 billion, which would represent changes of +19.85% and +7.38%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Paypal. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. The Zacks Consensus EPS estimate has moved 0.26% higher within the past month. Paypal is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Paypal's current valuation metrics, including its Forward P/E ratio of 12.88. For comparison, its industry has an average Forward P/E of 42, which means Paypal is trading at a discount to the group.
It is also worth noting that PYPL currently has a PEG ratio of 0.78. 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 1.67 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 102, putting it in the top 41% 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 $63.56 in the latest trading session, marking a -0.27% move from the prior day. This change lagged the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq lost 8.94%.
Prior to today's trading, shares of the technology platform and digital payments company had gained 2.38% over the past month. This has lagged the Computer and Technology sector's gain of 10.86% and the S&P 500's gain of 5.41% in that time.
Paypal will be looking to display strength as it nears its next earnings release. In that report, analysts expect Paypal to post earnings of $1.16 per share. This would mark year-over-year growth of 24.73%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.27 billion, up 6.78% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.95 per share and revenue of $29.55 billion, which would represent changes of +19.85% and +7.38%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Paypal. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. The Zacks Consensus EPS estimate has moved 0.26% higher within the past month. Paypal is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Paypal's current valuation metrics, including its Forward P/E ratio of 12.88. For comparison, its industry has an average Forward P/E of 42, which means Paypal is trading at a discount to the group.
It is also worth noting that PYPL currently has a PEG ratio of 0.78. 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 1.67 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 102, putting it in the top 41% 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.