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Paypal (PYPL) Outperforms Broader Market: What You Need to Know
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In the latest market close, Paypal (PYPL - Free Report) reached $62.73, with a +0.27% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.14%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 0.16%.
The technology platform and digital payments company's stock has climbed by 6.99% in the past month, exceeding the Computer and Technology sector's gain of 4.87% and the S&P 500's gain of 4.89%.
Market participants will be closely following the financial results of Paypal in its upcoming release. The company's earnings per share (EPS) are projected to be $1.36, reflecting a 9.68% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $7.88 billion, indicating a 6.75% upward movement from the same quarter last year.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $4.98 per share and revenue of $29.6 billion. These results would represent year-over-year changes of +20.58% and +7.57%, respectively.
It is also important to note the recent changes to analyst estimates for Paypal. Such recent modifications usually signify the changing landscape 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% higher. Paypal is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Paypal is currently trading at a Forward P/E ratio of 12.56. This valuation marks a discount compared to its industry's average Forward P/E of 40.02.
Investors should also note that PYPL has a PEG ratio of 0.78 right now. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.81.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Paypal (PYPL) Outperforms Broader Market: What You Need to Know
In the latest market close, Paypal (PYPL - Free Report) reached $62.73, with a +0.27% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.14%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 0.16%.
The technology platform and digital payments company's stock has climbed by 6.99% in the past month, exceeding the Computer and Technology sector's gain of 4.87% and the S&P 500's gain of 4.89%.
Market participants will be closely following the financial results of Paypal in its upcoming release. The company's earnings per share (EPS) are projected to be $1.36, reflecting a 9.68% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $7.88 billion, indicating a 6.75% upward movement from the same quarter last year.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $4.98 per share and revenue of $29.6 billion. These results would represent year-over-year changes of +20.58% and +7.57%, respectively.
It is also important to note the recent changes to analyst estimates for Paypal. Such recent modifications usually signify the changing landscape 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% higher. Paypal is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Paypal is currently trading at a Forward P/E ratio of 12.56. This valuation marks a discount compared to its industry's average Forward P/E of 40.02.
Investors should also note that PYPL has a PEG ratio of 0.78 right now. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.81.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.