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Paypal (PYPL) Dips More Than Broader Market: What You Should Know

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Paypal (PYPL - Free Report) ended the recent trading session at $62, demonstrating a -0.43% swing from the preceding day's closing price. This change lagged the S&P 500's 0.17% loss on the day. Elsewhere, the Dow lost 0.39%, while the tech-heavy Nasdaq lost 0.05%.

Heading into today, shares of the technology platform and digital payments company had lost 10.6% over the past month, lagging the Business Services sector's loss of 3.14% and the S&P 500's loss of 3.94% in that time.

Investors will be eagerly watching for the performance of Paypal in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 29, 2025. In that report, analysts expect Paypal to post earnings of $1.15 per share. This would mark a year-over-year decline of 17.86%. Meanwhile, our latest consensus estimate is calling for revenue of $7.82 billion, up 1.55% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5 per share and revenue of $32.97 billion, which would represent changes of +7.53% and +3.7%, respectively, from the prior year.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.41% downward. Paypal is currently a Zacks Rank #3 (Hold).

In terms of valuation, Paypal is currently trading at a Forward P/E ratio of 12.45. This represents a discount compared to its industry's average Forward P/E of 14.64.

Also, we should mention that PYPL has a PEG ratio of 1.11. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 1.31.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 85, putting it in the top 35% of all 250+ industries.

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.

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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