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Paypal (PYPL) Outpaces Stock Market Gains: What You Should Know
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Paypal (PYPL - Free Report) closed at $103.15 in the latest trading session, marking a +1.58% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.72%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq gained 0.71%.
Coming into today, shares of the technology platform and digital payments company had gained 5.02% in the past month. In that same time, the Computer and Technology sector gained 2.41%, while the S&P 500 gained 0.28%.
Wall Street will be looking for positivity from PYPL as it approaches its next earnings report date. On that day, PYPL is projected to report earnings of $0.67 per share, which would represent year-over-year growth of 17.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.12 billion, up 11.85% from the year-ago period.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $2.88 per share and revenue of $18 billion. These results would represent year-over-year changes of +19.01% and +16.48%, respectively.
It is also important to note the recent changes to analyst estimates for PYPL. These revisions help to show the ever-changing nature of near-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 0.15% higher. PYPL is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, PYPL currently has a Forward P/E ratio of 35.29. For comparison, its industry has an average Forward P/E of 55.76, which means PYPL is trading at a discount to the group.
It is also worth noting that PYPL currently has a PEG ratio of 1.97. 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. The Internet - Software industry currently had an average PEG ratio of 3.2 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Paypal (PYPL) Outpaces Stock Market Gains: What You Should Know
Paypal (PYPL - Free Report) closed at $103.15 in the latest trading session, marking a +1.58% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.72%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq gained 0.71%.
Coming into today, shares of the technology platform and digital payments company had gained 5.02% in the past month. In that same time, the Computer and Technology sector gained 2.41%, while the S&P 500 gained 0.28%.
Wall Street will be looking for positivity from PYPL as it approaches its next earnings report date. On that day, PYPL is projected to report earnings of $0.67 per share, which would represent year-over-year growth of 17.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.12 billion, up 11.85% from the year-ago period.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $2.88 per share and revenue of $18 billion. These results would represent year-over-year changes of +19.01% and +16.48%, respectively.
It is also important to note the recent changes to analyst estimates for PYPL. These revisions help to show the ever-changing nature of near-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 0.15% higher. PYPL is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, PYPL currently has a Forward P/E ratio of 35.29. For comparison, its industry has an average Forward P/E of 55.76, which means PYPL is trading at a discount to the group.
It is also worth noting that PYPL currently has a PEG ratio of 1.97. 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. The Internet - Software industry currently had an average PEG ratio of 3.2 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.