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Paypal (PYPL) Outpaces Stock Market Gains: What You Should Know
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Paypal (PYPL - Free Report) closed at $74.29 in the latest trading session, marking a +0.15% move from the prior day. This change outpaced the S&P 500's 0.09% gain on the day. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq lost 4.87%.
Prior to today's trading, shares of the technology platform and digital payments company had gained 0.41% over the past month. This has lagged the Computer and Technology sector's gain of 0.98% and the S&P 500's gain of 3.31% in that time.
Wall Street will be looking for positivity from Paypal as it approaches its next earnings report date. This is expected to be May 8, 2023. The company is expected to report EPS of $1.09, up 23.86% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.97 billion, up 7.53% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.90 per share and revenue of $29.2 billion, which would represent changes of +18.64% and +6.12%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Paypal. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.28% higher. Paypal is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Paypal has a Forward P/E ratio of 15.14 right now. Its industry sports an average Forward P/E of 41.57, so we one might conclude that Paypal is trading at a discount comparatively.
We can also see that PYPL currently has a PEG ratio of 0.87. 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. The Internet - Software industry currently had an average PEG ratio of 1.66 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Paypal (PYPL) Outpaces Stock Market Gains: What You Should Know
Paypal (PYPL - Free Report) closed at $74.29 in the latest trading session, marking a +0.15% move from the prior day. This change outpaced the S&P 500's 0.09% gain on the day. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq lost 4.87%.
Prior to today's trading, shares of the technology platform and digital payments company had gained 0.41% over the past month. This has lagged the Computer and Technology sector's gain of 0.98% and the S&P 500's gain of 3.31% in that time.
Wall Street will be looking for positivity from Paypal as it approaches its next earnings report date. This is expected to be May 8, 2023. The company is expected to report EPS of $1.09, up 23.86% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.97 billion, up 7.53% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.90 per share and revenue of $29.2 billion, which would represent changes of +18.64% and +6.12%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Paypal. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.28% higher. Paypal is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Paypal has a Forward P/E ratio of 15.14 right now. Its industry sports an average Forward P/E of 41.57, so we one might conclude that Paypal is trading at a discount comparatively.
We can also see that PYPL currently has a PEG ratio of 0.87. 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. The Internet - Software industry currently had an average PEG ratio of 1.66 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.