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Paypal (PYPL) Gains But Lags Market: What You Should Know
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Paypal (PYPL - Free Report) closed the most recent trading day at $114.85, moving +0.18% from the previous trading session. This change lagged the S&P 500's 0.19% gain on the day. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 0.08%.
Heading into today, shares of the technology platform and digital payments company had gained 5.7% over the past month, lagging the Computer and Technology sector's gain of 6.59% and outpacing the S&P 500's gain of 3.72% in that time.
PYPL will be looking to display strength as it nears its next earnings release, which is expected to be January 29, 2020. The company is expected to report EPS of $0.83, up 20.29% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.94 billion, up 16.96% from the year-ago period.
Investors might also notice recent changes to analyst estimates for PYPL. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% lower. PYPL is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note PYPL's current valuation metrics, including its Forward P/E ratio of 32.87. Its industry sports an average Forward P/E of 56.77, so we one might conclude that PYPL is trading at a discount comparatively.
Also, we should mention that PYPL has a PEG ratio of 1.78. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.51 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 101, which puts it in the top 40% 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.
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) Gains But Lags Market: What You Should Know
Paypal (PYPL - Free Report) closed the most recent trading day at $114.85, moving +0.18% from the previous trading session. This change lagged the S&P 500's 0.19% gain on the day. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 0.08%.
Heading into today, shares of the technology platform and digital payments company had gained 5.7% over the past month, lagging the Computer and Technology sector's gain of 6.59% and outpacing the S&P 500's gain of 3.72% in that time.
PYPL will be looking to display strength as it nears its next earnings release, which is expected to be January 29, 2020. The company is expected to report EPS of $0.83, up 20.29% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.94 billion, up 16.96% from the year-ago period.
Investors might also notice recent changes to analyst estimates for PYPL. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% lower. PYPL is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note PYPL's current valuation metrics, including its Forward P/E ratio of 32.87. Its industry sports an average Forward P/E of 56.77, so we one might conclude that PYPL is trading at a discount comparatively.
Also, we should mention that PYPL has a PEG ratio of 1.78. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.51 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 101, which puts it in the top 40% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.