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Paypal (PYPL) Ascends While Market Falls: Some Facts to Note
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Paypal (PYPL - Free Report) ended the recent trading session at $61.46, demonstrating a +0.08% swing from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 0.57%. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, lost 1.64%.
Heading into today, shares of the technology platform and digital payments company had gained 2.61% over the past month, lagging the Computer and Technology sector's gain of 4.46% and the S&P 500's gain of 4% in that time.
The investment community will be closely monitoring the performance of Paypal in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.36, marking a 9.68% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.88 billion, up 6.75% from the year-ago period.
Investors should also pay attention to any latest changes in analyst estimates for Paypal. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. Currently, Paypal is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Paypal currently has a Forward P/E ratio of 11.06. For comparison, its industry has an average Forward P/E of 35.46, which means Paypal is trading at a discount to the group.
It's also important to note that PYPL currently trades at a PEG ratio of 0.68. 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 had an average PEG ratio of 1.67 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 35, finds itself in the top 14% echelons 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Paypal (PYPL) Ascends While Market Falls: Some Facts to Note
Paypal (PYPL - Free Report) ended the recent trading session at $61.46, demonstrating a +0.08% swing from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 0.57%. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, lost 1.64%.
Heading into today, shares of the technology platform and digital payments company had gained 2.61% over the past month, lagging the Computer and Technology sector's gain of 4.46% and the S&P 500's gain of 4% in that time.
The investment community will be closely monitoring the performance of Paypal in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.36, marking a 9.68% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.88 billion, up 6.75% from the year-ago period.
Investors should also pay attention to any latest changes in analyst estimates for Paypal. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. Currently, Paypal is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Paypal currently has a Forward P/E ratio of 11.06. For comparison, its industry has an average Forward P/E of 35.46, which means Paypal is trading at a discount to the group.
It's also important to note that PYPL currently trades at a PEG ratio of 0.68. 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 had an average PEG ratio of 1.67 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 35, finds itself in the top 14% echelons 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.
You can find more information on all of these metrics, and much more, on Zacks.com.