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Paypal (PYPL) Stock Sinks As Market Gains: What You Should Know

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Paypal (PYPL - Free Report) closed the most recent trading day at $80.71, moving -0.55% from the previous trading session. This change lagged the S&P 500's daily gain of 1.29%. At the same time, the Dow added 1.55%, and the tech-heavy Nasdaq gained 1.27%.

Investors will be hoping for strength from PYPL as it approaches its next earnings release, which is expected to be January 30, 2019. In that report, analysts expect PYPL to post earnings of $0.67 per share. This would mark year-over-year growth of 21.82%. Meanwhile, our latest consensus estimate is calling for revenue of $4.24 billion, up 13.18% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.39 per share and revenue of $15.46 billion. These totals would mark changes of +25.79% and +18.08%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for PYPL. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate has moved 3.07% higher within the past month. PYPL currently has a Zacks Rank of #2 (Buy).

Investors should also note PYPL's current valuation metrics, including its Forward P/E ratio of 45.31. Its industry sports an average Forward P/E of 54.92, so we one might conclude that PYPL is trading at a discount comparatively.

Investors should also note that PYPL has a PEG ratio of 2.55 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. PYPL's industry had an average PEG ratio of 2.47 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 36, putting it in the top 14% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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