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Paypal (PYPL) Exceeds Market Returns: Some Facts to Consider
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Paypal (PYPL - Free Report) closed the latest trading day at $70.36, indicating a +1.46% change from the previous session's end. This change outpaced the S&P 500's 0.75% gain on the day. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 1%.
Shares of the technology platform and digital payments company witnessed a gain of 4.85% over the previous month, beating the performance of the Computer and Technology sector with its gain of 2.48% and the S&P 500's gain of 4.03%.
The investment community will be paying close attention to the earnings performance of Paypal in its upcoming release. The company is predicted to post an EPS of $1.06, indicating a 18.46% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $7.85 billion, reflecting a 5.8% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.42 per share and a revenue of $31.94 billion, representing changes of -13.33% and +7.29%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Paypal. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Paypal currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Paypal is holding a Forward P/E ratio of 15.7. This represents a discount compared to its industry's average Forward P/E of 30.47.
We can also see that PYPL currently has a PEG ratio of 0.99. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.99.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 36% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Paypal (PYPL) Exceeds Market Returns: Some Facts to Consider
Paypal (PYPL - Free Report) closed the latest trading day at $70.36, indicating a +1.46% change from the previous session's end. This change outpaced the S&P 500's 0.75% gain on the day. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 1%.
Shares of the technology platform and digital payments company witnessed a gain of 4.85% over the previous month, beating the performance of the Computer and Technology sector with its gain of 2.48% and the S&P 500's gain of 4.03%.
The investment community will be paying close attention to the earnings performance of Paypal in its upcoming release. The company is predicted to post an EPS of $1.06, indicating a 18.46% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $7.85 billion, reflecting a 5.8% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.42 per share and a revenue of $31.94 billion, representing changes of -13.33% and +7.29%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Paypal. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Paypal currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Paypal is holding a Forward P/E ratio of 15.7. This represents a discount compared to its industry's average Forward P/E of 30.47.
We can also see that PYPL currently has a PEG ratio of 0.99. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.99.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 36% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.