We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Paypal (PYPL) Outperforms Broader Market: What You Need to Know
Read MoreHide Full Article
In the latest market close, Paypal (PYPL - Free Report) reached $64.78, with a +1.63% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.29%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 0.43%.
Shares of the technology platform and digital payments company have appreciated by 3.07% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.67% and outperforming the S&P 500's gain of 2.08%.
The investment community will be closely monitoring the performance of Paypal in its forthcoming earnings report. The company is scheduled to release its earnings on February 7, 2024. The company is predicted to post an EPS of $1.36, indicating a 9.68% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $7.88 billion, up 6.74% from the year-ago period.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Paypal. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.98% lower. Paypal currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Paypal is currently exchanging hands at a Forward P/E ratio of 11.57. For comparison, its industry has an average Forward P/E of 34.92, which means Paypal is trading at a discount to the group.
It's also important to note that PYPL currently trades at a PEG ratio of 0.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.79 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 59, this industry ranks in the top 24% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Paypal (PYPL) Outperforms Broader Market: What You Need to Know
In the latest market close, Paypal (PYPL - Free Report) reached $64.78, with a +1.63% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.29%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 0.43%.
Shares of the technology platform and digital payments company have appreciated by 3.07% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.67% and outperforming the S&P 500's gain of 2.08%.
The investment community will be closely monitoring the performance of Paypal in its forthcoming earnings report. The company is scheduled to release its earnings on February 7, 2024. The company is predicted to post an EPS of $1.36, indicating a 9.68% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $7.88 billion, up 6.74% from the year-ago period.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Paypal. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.98% lower. Paypal currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Paypal is currently exchanging hands at a Forward P/E ratio of 11.57. For comparison, its industry has an average Forward P/E of 34.92, which means Paypal is trading at a discount to the group.
It's also important to note that PYPL currently trades at a PEG ratio of 0.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.79 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 59, this industry ranks in the top 24% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.