Paypal (PYPL) closed at $115.03 in the latest trading session, marking a +0.5% move from the prior day. This change lagged the S&P 500's 0.77% gain on the day. Elsewhere, the Dow gained 0.44%, while the tech-heavy Nasdaq added 1.06%.
Coming into today, shares of the technology platform and digital payments company had gained 2.74% in the past month. In that same time, the Computer and Technology sector gained 4.12%, while the S&P 500 gained 5.12%.
Wall Street will be looking for positivity from PYPL as it approaches its next earnings report date. In that report, analysts expect PYPL to post earnings of $0.69 per share. This would mark year-over-year growth of 18.97%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.33 billion, up 12.3% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.98 per share and revenue of $18 billion, which would represent changes of +23.14% and +16.51%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for PYPL. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. PYPL is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, PYPL is currently trading at a Forward P/E ratio of 38.38. This represents a discount compared to its industry's average Forward P/E of 62.74.
Meanwhile, PYPL's PEG ratio is currently 2.14. 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 2.77 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 98, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.
PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
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