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Paypal (PYPL) Ascends While Market Falls: Some Facts to Note
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Paypal (PYPL - Free Report) closed the most recent trading day at $60.02, moving +1.89% from the previous trading session. This change outpaced the S&P 500's 0.88% loss on the day. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq depreciated by 1.95%.
Shares of the technology platform and digital payments company have depreciated by 7.14% over the course of the past month, underperforming the Computer and Technology sector's gain of 9.48% and the S&P 500's gain of 5.11%.
The investment community will be paying close attention to the earnings performance of Paypal in its upcoming release. The company is slated to reveal its earnings on July 30, 2024. The company is predicted to post an EPS of $0.95, indicating a 18.1% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $7.78 billion, reflecting a 6.73% rise from the equivalent quarter last year.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $4.14 per share and revenue of $31.97 billion. These results would represent year-over-year changes of -18.82% and +7.37%, respectively.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Paypal is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Paypal is presently trading at a Forward P/E ratio of 14.24. For comparison, its industry has an average Forward P/E of 29.49, which means Paypal is trading at a discount to the group.
We can also see that PYPL currently has a PEG ratio of 0.96. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.67.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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Paypal (PYPL) Ascends While Market Falls: Some Facts to Note
Paypal (PYPL - Free Report) closed the most recent trading day at $60.02, moving +1.89% from the previous trading session. This change outpaced the S&P 500's 0.88% loss on the day. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq depreciated by 1.95%.
Shares of the technology platform and digital payments company have depreciated by 7.14% over the course of the past month, underperforming the Computer and Technology sector's gain of 9.48% and the S&P 500's gain of 5.11%.
The investment community will be paying close attention to the earnings performance of Paypal in its upcoming release. The company is slated to reveal its earnings on July 30, 2024. The company is predicted to post an EPS of $0.95, indicating a 18.1% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $7.78 billion, reflecting a 6.73% rise from the equivalent quarter last year.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $4.14 per share and revenue of $31.97 billion. These results would represent year-over-year changes of -18.82% and +7.37%, respectively.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Paypal is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Paypal is presently trading at a Forward P/E ratio of 14.24. For comparison, its industry has an average Forward P/E of 29.49, which means Paypal is trading at a discount to the group.
We can also see that PYPL currently has a PEG ratio of 0.96. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.67.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.