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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 $120.90, moving +0.65% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.02%. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.17%.
Coming into today, shares of the technology platform and digital payments company had gained 3.8% in the past month. In that same time, the Computer and Technology sector gained 6.42%, while the S&P 500 gained 4.82%.
Wall Street will be looking for positivity from PYPL as it approaches its next earnings report date. This is expected to be July 24, 2019. In that report, analysts expect PYPL to post earnings of $0.72 per share. This would mark year-over-year growth of 24.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.33 billion, up 12.3% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.01 per share and revenue of $18 billion. These totals would mark changes of +24.38% and +16.51%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for PYPL. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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 0.44% higher. PYPL is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that PYPL has a Forward P/E ratio of 39.95 right now. For comparison, its industry has an average Forward P/E of 64.77, which means PYPL is trading at a discount to the group.
It is also worth noting that PYPL currently has a PEG ratio of 2.23. 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. Internet - Software stocks are, on average, holding a PEG ratio of 3.09 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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 $120.90, moving +0.65% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.02%. At the same time, the Dow added 0.1%, and the tech-heavy Nasdaq gained 0.17%.
Coming into today, shares of the technology platform and digital payments company had gained 3.8% in the past month. In that same time, the Computer and Technology sector gained 6.42%, while the S&P 500 gained 4.82%.
Wall Street will be looking for positivity from PYPL as it approaches its next earnings report date. This is expected to be July 24, 2019. In that report, analysts expect PYPL to post earnings of $0.72 per share. This would mark year-over-year growth of 24.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.33 billion, up 12.3% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.01 per share and revenue of $18 billion. These totals would mark changes of +24.38% and +16.51%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for PYPL. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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 0.44% higher. PYPL is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that PYPL has a Forward P/E ratio of 39.95 right now. For comparison, its industry has an average Forward P/E of 64.77, which means PYPL is trading at a discount to the group.
It is also worth noting that PYPL currently has a PEG ratio of 2.23. 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. Internet - Software stocks are, on average, holding a PEG ratio of 3.09 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.