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Paypal (PYPL) Outpaces Stock Market Gains: What You Should Know
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Paypal (PYPL - Free Report) closed the most recent trading day at $108.20, moving +0.06% from the previous trading session. This change outpaced the S&P 500's 0.05% gain on the day. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq added 0.3%.
Heading into today, shares of the technology platform and digital payments company had gained 7.85% over the past month, outpacing the Computer and Technology sector's gain of 3.73% and the S&P 500's gain of 3.08% in that time.
Investors will be hoping for strength from PYPL as it approaches its next earnings release, which is expected to be April 24, 2019. On that day, PYPL is projected to report earnings of $0.67 per share, which would represent year-over-year growth of 17.54%. Our most recent consensus estimate is calling for quarterly revenue 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.
Investors might also notice recent changes to analyst estimates for PYPL. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 0.19% higher within the past month. PYPL currently has a Zacks Rank of #2 (Buy).
In terms of valuation, PYPL is currently trading at a Forward P/E ratio of 37.58. For comparison, its industry has an average Forward P/E of 55.75, which means PYPL is trading at a discount to the group.
Also, we should mention that PYPL has a PEG ratio of 2.11. 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 3.23 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 48, putting it in the top 19% 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.
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Paypal (PYPL) Outpaces Stock Market Gains: What You Should Know
Paypal (PYPL - Free Report) closed the most recent trading day at $108.20, moving +0.06% from the previous trading session. This change outpaced the S&P 500's 0.05% gain on the day. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq added 0.3%.
Heading into today, shares of the technology platform and digital payments company had gained 7.85% over the past month, outpacing the Computer and Technology sector's gain of 3.73% and the S&P 500's gain of 3.08% in that time.
Investors will be hoping for strength from PYPL as it approaches its next earnings release, which is expected to be April 24, 2019. On that day, PYPL is projected to report earnings of $0.67 per share, which would represent year-over-year growth of 17.54%. Our most recent consensus estimate is calling for quarterly revenue 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.
Investors might also notice recent changes to analyst estimates for PYPL. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 0.19% higher within the past month. PYPL currently has a Zacks Rank of #2 (Buy).
In terms of valuation, PYPL is currently trading at a Forward P/E ratio of 37.58. For comparison, its industry has an average Forward P/E of 55.75, which means PYPL is trading at a discount to the group.
Also, we should mention that PYPL has a PEG ratio of 2.11. 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 3.23 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 48, putting it in the top 19% 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.