Back to top

Image: Bigstock

Paypal (PYPL) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

Paypal (PYPL - Free Report) closed the most recent trading day at $286.88, moving +0.58% from the previous trading session. This change outpaced the S&P 500's 0.46% loss on the day.

Coming into today, shares of the technology platform and digital payments company had gained 3.19% in the past month. In that same time, the Computer and Technology sector gained 3.42%, while the S&P 500 gained 1.93%.

Wall Street will be looking for positivity from PYPL as it approaches its next earnings report date. In that report, analysts expect PYPL to post earnings of $1.07 per share. This would mark no growth from the year-ago period. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.22 billion, up 13.96% from the year-ago period.

PYPL's full-year Zacks Consensus Estimates are calling for earnings of $4.73 per share and revenue of $25.77 billion. These results would represent year-over-year changes of +21.91% and +20.1%, respectively.

It is also important to note the recent changes to analyst estimates for PYPL. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. PYPL is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that PYPL has a Forward P/E ratio of 60.33 right now. This valuation marks a premium compared to its industry's average Forward P/E of 60.28.

Meanwhile, PYPL's PEG ratio is currently 2.78. 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. PYPL's industry had an average PEG ratio of 4.15 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 204, putting it in the bottom 20% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


PayPal Holdings, Inc. (PYPL) - free report >>

Published in