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Paypal (PYPL) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Paypal (PYPL - Free Report) closed at $86.81, marking a +0.32% move from the previous day. This move outpaced the S&P 500's daily gain of 0.31%. Meanwhile, the Dow gained 0.05%, and the Nasdaq, a tech-heavy index, added 0.14%.
Heading into today, shares of the technology platform and digital payments company had gained 5.94% over the past month, outpacing the Computer and Technology sector's loss of 3.62% and the S&P 500's loss of 1.38% in that time.
Wall Street will be looking for positivity from Paypal as it approaches its next earnings report date. The company is expected to report EPS of $0.87, down 24.35% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.82 billion, up 9.37% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4 per share and revenue of $28.28 billion, which would represent changes of -13.04% and +11.48%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Paypal. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.25% lower. Paypal is holding a Zacks Rank of #5 (Strong Sell) right now.
Investors should also note Paypal's current valuation metrics, including its Forward P/E ratio of 21.64. Its industry sports an average Forward P/E of 44.67, so we one might conclude that Paypal is trading at a discount comparatively.
Meanwhile, PYPL's PEG ratio is currently 1.25. 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 industry currently had an average PEG ratio of 3.09 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 149, putting it in the bottom 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Paypal (PYPL) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Paypal (PYPL - Free Report) closed at $86.81, marking a +0.32% move from the previous day. This move outpaced the S&P 500's daily gain of 0.31%. Meanwhile, the Dow gained 0.05%, and the Nasdaq, a tech-heavy index, added 0.14%.
Heading into today, shares of the technology platform and digital payments company had gained 5.94% over the past month, outpacing the Computer and Technology sector's loss of 3.62% and the S&P 500's loss of 1.38% in that time.
Wall Street will be looking for positivity from Paypal as it approaches its next earnings report date. The company is expected to report EPS of $0.87, down 24.35% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.82 billion, up 9.37% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4 per share and revenue of $28.28 billion, which would represent changes of -13.04% and +11.48%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Paypal. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.25% lower. Paypal is holding a Zacks Rank of #5 (Strong Sell) right now.
Investors should also note Paypal's current valuation metrics, including its Forward P/E ratio of 21.64. Its industry sports an average Forward P/E of 44.67, so we one might conclude that Paypal is trading at a discount comparatively.
Meanwhile, PYPL's PEG ratio is currently 1.25. 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 industry currently had an average PEG ratio of 3.09 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 149, putting it in the bottom 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.