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Paypal (PYPL) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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The latest trading session saw Paypal (PYPL - Free Report) ending at $61.23, denoting a -1.03% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.01%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.36%.
Shares of the technology platform and digital payments company have appreciated by 8.89% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.87% and the S&P 500's gain of 5.21%.
Investors will be eagerly watching for the performance of Paypal in its upcoming earnings disclosure. In that report, analysts expect Paypal to post earnings of $1.36 per share. This would mark year-over-year growth of 9.68%. At the same time, our most recent consensus estimate is projecting a revenue of $7.88 billion, reflecting a 6.75% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.98 per share and revenue of $29.6 billion, indicating changes of +20.58% and +7.57%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Paypal. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.11% higher. Paypal is currently a Zacks Rank #3 (Hold).
Investors should also note Paypal's current valuation metrics, including its Forward P/E ratio of 12.43. This denotes a discount relative to the industry's average Forward P/E of 40.21.
Meanwhile, PYPL's PEG ratio is currently 0.77. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. PYPL's industry had an average PEG ratio of 1.8 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 28, finds itself in the top 12% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Paypal (PYPL) Sees a More Significant Dip Than Broader Market: Some Facts to Know
The latest trading session saw Paypal (PYPL - Free Report) ending at $61.23, denoting a -1.03% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.01%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.36%.
Shares of the technology platform and digital payments company have appreciated by 8.89% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.87% and the S&P 500's gain of 5.21%.
Investors will be eagerly watching for the performance of Paypal in its upcoming earnings disclosure. In that report, analysts expect Paypal to post earnings of $1.36 per share. This would mark year-over-year growth of 9.68%. At the same time, our most recent consensus estimate is projecting a revenue of $7.88 billion, reflecting a 6.75% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.98 per share and revenue of $29.6 billion, indicating changes of +20.58% and +7.57%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Paypal. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.11% higher. Paypal is currently a Zacks Rank #3 (Hold).
Investors should also note Paypal's current valuation metrics, including its Forward P/E ratio of 12.43. This denotes a discount relative to the industry's average Forward P/E of 40.21.
Meanwhile, PYPL's PEG ratio is currently 0.77. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. PYPL's industry had an average PEG ratio of 1.8 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 28, finds itself in the top 12% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.