We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Paypal (PYPL) Advances While Market Declines: Some Information for Investors
Read MoreHide Full Article
Paypal (PYPL - Free Report) closed the latest trading day at $66, indicating a +1.9% change from the previous session's end. This change outpaced the S&P 500's 0.31% loss on the day. Elsewhere, the Dow saw a downswing of 0.41%, while the tech-heavy Nasdaq depreciated by 0.27%.
The technology platform and digital payments company's stock has climbed by 9.48% in the past month, exceeding the Computer and Technology sector's gain of 3.86% and the S&P 500's gain of 3.05%.
Analysts and investors alike will be keeping a close eye on the performance of Paypal in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.16, marking a 0.85% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $7.51 billion, up 6.7% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.98 per share and a revenue of $31.93 billion, demonstrating changes of -2.35% and +7.27%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Paypal. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
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. Within the past 30 days, our consensus EPS projection has moved 1% lower. Paypal is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Paypal is currently being traded at a Forward P/E ratio of 13.02. This expresses a discount compared to the average Forward P/E of 30.73 of its industry.
Also, we should mention that PYPL has a PEG ratio of 1.16. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.84 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 39, placing it within the top 16% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Paypal (PYPL) Advances While Market Declines: Some Information for Investors
Paypal (PYPL - Free Report) closed the latest trading day at $66, indicating a +1.9% change from the previous session's end. This change outpaced the S&P 500's 0.31% loss on the day. Elsewhere, the Dow saw a downswing of 0.41%, while the tech-heavy Nasdaq depreciated by 0.27%.
The technology platform and digital payments company's stock has climbed by 9.48% in the past month, exceeding the Computer and Technology sector's gain of 3.86% and the S&P 500's gain of 3.05%.
Analysts and investors alike will be keeping a close eye on the performance of Paypal in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.16, marking a 0.85% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $7.51 billion, up 6.7% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $4.98 per share and a revenue of $31.93 billion, demonstrating changes of -2.35% and +7.27%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Paypal. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
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. Within the past 30 days, our consensus EPS projection has moved 1% lower. Paypal is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Paypal is currently being traded at a Forward P/E ratio of 13.02. This expresses a discount compared to the average Forward P/E of 30.73 of its industry.
Also, we should mention that PYPL has a PEG ratio of 1.16. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.84 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 39, placing it within the top 16% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.