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Paypal (PYPL) Surpasses Market Returns: Some Facts Worth Knowing
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Paypal (PYPL - Free Report) closed the latest trading day at $67, indicating a +0.99% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 0.15%. On the other hand, the Dow registered a loss of 0.02%, and the technology-centric Nasdaq increased by 0.32%.
The the stock of technology platform and digital payments company has risen by 10.42% in the past month, leading the Computer and Technology sector's gain of 1.32% and the S&P 500's gain of 1.65%.
The investment community will be closely monitoring the performance of Paypal in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.18, marking a 0.85% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $7.5 billion, indicating a 6.6% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.05 per share and a revenue of $31.94 billion, representing changes of -0.98% and +7.28%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Paypal. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 1.79% higher. Right now, Paypal possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Paypal is currently trading at a Forward P/E ratio of 13.13. For comparison, its industry has an average Forward P/E of 28.72, which means Paypal is trading at a discount to the group.
Investors should also note that PYPL has a PEG ratio of 1.17 right now. 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 had an average PEG ratio of 1.86 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 38, placing it within the top 16% of over 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) Surpasses Market Returns: Some Facts Worth Knowing
Paypal (PYPL - Free Report) closed the latest trading day at $67, indicating a +0.99% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 0.15%. On the other hand, the Dow registered a loss of 0.02%, and the technology-centric Nasdaq increased by 0.32%.
The the stock of technology platform and digital payments company has risen by 10.42% in the past month, leading the Computer and Technology sector's gain of 1.32% and the S&P 500's gain of 1.65%.
The investment community will be closely monitoring the performance of Paypal in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.18, marking a 0.85% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $7.5 billion, indicating a 6.6% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.05 per share and a revenue of $31.94 billion, representing changes of -0.98% and +7.28%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Paypal. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 1.79% higher. Right now, Paypal possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Paypal is currently trading at a Forward P/E ratio of 13.13. For comparison, its industry has an average Forward P/E of 28.72, which means Paypal is trading at a discount to the group.
Investors should also note that PYPL has a PEG ratio of 1.17 right now. 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 had an average PEG ratio of 1.86 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 38, placing it within the top 16% of over 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.