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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 $83.32, moving -0.74% from the previous trading session. This change lagged the S&P 500's 1.19% gain on the day. Elsewhere, the Dow gained 1.34%, while the tech-heavy Nasdaq lost 0.2%.
Heading into today, shares of the technology platform and digital payments company had lost 3.48% over the past month, lagging the Computer and Technology sector's loss of 2.47% and the S&P 500's loss of 0.84% in that time.
Wall Street will be looking for positivity from Paypal as it approaches its next earnings report date. This is expected to be November 3, 2022. The company is expected to report EPS of $0.95, down 14.41% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.82 billion, up 10.4% from the prior-year quarter.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $3.94 per share and revenue of $27.88 billion. These results would represent year-over-year changes of -14.35% and +9.89%, respectively.
It is also important to note the recent changes to analyst estimates for Paypal. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.28% higher. Paypal is currently a Zacks Rank #3 (Hold).
In terms of valuation, Paypal is currently trading at a Forward P/E ratio of 21.32. Its industry sports an average Forward P/E of 41.33, so we one might conclude that Paypal is trading at a discount comparatively.
It is also worth noting that PYPL currently has a PEG ratio of 1.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PYPL's industry had an average PEG ratio of 2.13 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 78, putting it in the top 31% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Paypal (PYPL) Stock Sinks As Market Gains: What You Should Know
Paypal (PYPL - Free Report) closed the most recent trading day at $83.32, moving -0.74% from the previous trading session. This change lagged the S&P 500's 1.19% gain on the day. Elsewhere, the Dow gained 1.34%, while the tech-heavy Nasdaq lost 0.2%.
Heading into today, shares of the technology platform and digital payments company had lost 3.48% over the past month, lagging the Computer and Technology sector's loss of 2.47% and the S&P 500's loss of 0.84% in that time.
Wall Street will be looking for positivity from Paypal as it approaches its next earnings report date. This is expected to be November 3, 2022. The company is expected to report EPS of $0.95, down 14.41% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.82 billion, up 10.4% from the prior-year quarter.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $3.94 per share and revenue of $27.88 billion. These results would represent year-over-year changes of -14.35% and +9.89%, respectively.
It is also important to note the recent changes to analyst estimates for Paypal. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.28% higher. Paypal is currently a Zacks Rank #3 (Hold).
In terms of valuation, Paypal is currently trading at a Forward P/E ratio of 21.32. Its industry sports an average Forward P/E of 41.33, so we one might conclude that Paypal is trading at a discount comparatively.
It is also worth noting that PYPL currently has a PEG ratio of 1.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PYPL's industry had an average PEG ratio of 2.13 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 78, putting it in the top 31% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.