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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 $60.98 in the latest trading session, marking a -1.09% move from the prior day. This change lagged the S&P 500's daily gain of 0.14%. Elsewhere, the Dow gained 0.22%, while the tech-heavy Nasdaq added 0.09%.
Coming into today, shares of the technology platform and digital payments company had lost 1.82% in the past month. In that same time, the Computer and Technology sector gained 0.07%, while the S&P 500 lost 1.27%.
Paypal will be looking to display strength as it nears its next earnings release. On that day, Paypal is projected to report earnings of $1.22 per share, which would represent year-over-year growth of 12.96%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.4 billion, up 8.06% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.95 per share and revenue of $29.7 billion. These totals would mark changes of +19.85% and +7.93%, respectively, from last year.
Any recent changes to analyst estimates for Paypal should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. Paypal is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Paypal is currently trading at a Forward P/E ratio of 12.46. This valuation marks a discount compared to its industry's average Forward P/E of 38.78.
Meanwhile, PYPL's PEG ratio is currently 0.72. 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 1.65 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 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
Paypal (PYPL - Free Report) closed at $60.98 in the latest trading session, marking a -1.09% move from the prior day. This change lagged the S&P 500's daily gain of 0.14%. Elsewhere, the Dow gained 0.22%, while the tech-heavy Nasdaq added 0.09%.
Coming into today, shares of the technology platform and digital payments company had lost 1.82% in the past month. In that same time, the Computer and Technology sector gained 0.07%, while the S&P 500 lost 1.27%.
Paypal will be looking to display strength as it nears its next earnings release. On that day, Paypal is projected to report earnings of $1.22 per share, which would represent year-over-year growth of 12.96%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.4 billion, up 8.06% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.95 per share and revenue of $29.7 billion. These totals would mark changes of +19.85% and +7.93%, respectively, from last year.
Any recent changes to analyst estimates for Paypal should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. Paypal is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Paypal is currently trading at a Forward P/E ratio of 12.46. This valuation marks a discount compared to its industry's average Forward P/E of 38.78.
Meanwhile, PYPL's PEG ratio is currently 0.72. 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 1.65 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 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.