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Paypal (PYPL) Stock Sinks As Market Gains: What You Should Know
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Paypal (PYPL - Free Report) closed at $243 in the latest trading session, marking a -1.57% move from the prior day. This change lagged the S&P 500's daily gain of 0.18%.
Heading into today, shares of the technology platform and digital payments company had lost 9.7% over the past month, lagging the Computer and Technology sector's loss of 1.76% and the S&P 500's gain of 2.96% in that time.
PYPL will be looking to display strength as it nears its next earnings release, which is expected to be November 8, 2021. In that report, analysts expect PYPL to post earnings of $1.08 per share. This would mark year-over-year growth of 0.93%. Meanwhile, our latest consensus estimate is calling for revenue of $6.22 billion, up 13.95% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.73 per share and revenue of $25.75 billion, which would represent changes of +21.91% and +20.04%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for PYPL. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. 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 52.25. Its industry sports an average Forward P/E of 71.78, so we one might conclude that PYPL is trading at a discount comparatively.
Meanwhile, PYPL's PEG ratio is currently 2.41. 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 was holding an average PEG ratio of 4.77 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 179, putting it in the bottom 30% 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) Stock Sinks As Market Gains: What You Should Know
Paypal (PYPL - Free Report) closed at $243 in the latest trading session, marking a -1.57% move from the prior day. This change lagged the S&P 500's daily gain of 0.18%.
Heading into today, shares of the technology platform and digital payments company had lost 9.7% over the past month, lagging the Computer and Technology sector's loss of 1.76% and the S&P 500's gain of 2.96% in that time.
PYPL will be looking to display strength as it nears its next earnings release, which is expected to be November 8, 2021. In that report, analysts expect PYPL to post earnings of $1.08 per share. This would mark year-over-year growth of 0.93%. Meanwhile, our latest consensus estimate is calling for revenue of $6.22 billion, up 13.95% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.73 per share and revenue of $25.75 billion, which would represent changes of +21.91% and +20.04%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for PYPL. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. 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 52.25. Its industry sports an average Forward P/E of 71.78, so we one might conclude that PYPL is trading at a discount comparatively.
Meanwhile, PYPL's PEG ratio is currently 2.41. 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 was holding an average PEG ratio of 4.77 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 179, putting it in the bottom 30% 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.