We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
It has been a rough year for tech stocks. The darlings of the market during the post-COVID surge, these stocks have been coming up short on earnings and revenue projections. The result, an absolute collapse. Just take a quick look at the NASDAQ Composite and you’ll see exactly what I mean. The tech-heavy index is down 23.2% year-to-date. There have been few places to hide within tech.
Today’s Bear of the Day is a stock that used to be one of the darlings in FinTech. Now, it’s come under pressure as earnings have contracted. I’m talking about PayPal (PYPL - Free Report) . PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names. The company's payments platform allows consumers to send and receive payments in approximately 200 markets and in approximately 100 currencies, withdraw funds to their bank accounts in 56 currencies, and hold balances in their PayPal accounts in 25 currencies.
PayPal is not in the good graces of our Zacks Rank. In fact, it is currently a Zacks Rank #5 (Strong Sell). The reason is the series of negative earnings estimate revisions coming from analysts. Over the last sixty days, fifteen analysts have cut their numbers for the current year, while fourteen have followed suit for next year. The bearish moves have dropped our Zacks Consensus Estimates for the current year from $4.66 to $4.00, while next year’s number is off from $5.76 to $4.82.
One feather in the cap of long-term investors here is that there is earnings growth coming back next year. While this year’s earnings are going through a 13% contraction, next year growth returns at 20.59%. That’s on revenue growth of 11.48% this year and 16.27% next year.
The Internet – Software industry is in the Bottom 41% of our Zacks Industry Rank. There are some stocks in that industry which are Zacks Rank #1 (Strong Buy) stocks. Those include Aspen Technology (ASPN - Free Report) and Paycom Software (PAYC - Free Report) .
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Bear of the Day: PayPal (PYPL)
It has been a rough year for tech stocks. The darlings of the market during the post-COVID surge, these stocks have been coming up short on earnings and revenue projections. The result, an absolute collapse. Just take a quick look at the NASDAQ Composite and you’ll see exactly what I mean. The tech-heavy index is down 23.2% year-to-date. There have been few places to hide within tech.
Today’s Bear of the Day is a stock that used to be one of the darlings in FinTech. Now, it’s come under pressure as earnings have contracted. I’m talking about PayPal (PYPL - Free Report) . PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names. The company's payments platform allows consumers to send and receive payments in approximately 200 markets and in approximately 100 currencies, withdraw funds to their bank accounts in 56 currencies, and hold balances in their PayPal accounts in 25 currencies.
PayPal is not in the good graces of our Zacks Rank. In fact, it is currently a Zacks Rank #5 (Strong Sell). The reason is the series of negative earnings estimate revisions coming from analysts. Over the last sixty days, fifteen analysts have cut their numbers for the current year, while fourteen have followed suit for next year. The bearish moves have dropped our Zacks Consensus Estimates for the current year from $4.66 to $4.00, while next year’s number is off from $5.76 to $4.82.
One feather in the cap of long-term investors here is that there is earnings growth coming back next year. While this year’s earnings are going through a 13% contraction, next year growth returns at 20.59%. That’s on revenue growth of 11.48% this year and 16.27% next year.
The Internet – Software industry is in the Bottom 41% of our Zacks Industry Rank. There are some stocks in that industry which are Zacks Rank #1 (Strong Buy) stocks. Those include Aspen Technology (ASPN - Free Report) and Paycom Software (PAYC - Free Report) .