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Paypal (PYPL) Registers a Bigger Fall Than the Market: Important Facts to Note
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Paypal (PYPL - Free Report) closed the latest trading day at $89.40, indicating a -1.49% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.54%. At the same time, the Dow lost 0.53%, and the tech-heavy Nasdaq lost 0.66%.
Heading into today, shares of the technology platform and digital payments company had gained 3.94% over the past month, outpacing the Computer and Technology sector's gain of 3.76% and the S&P 500's gain of 1.5% in that time.
The investment community will be paying close attention to the earnings performance of Paypal in its upcoming release. The company is forecasted to report an EPS of $1.10, showcasing a 25.68% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.24 billion, indicating a 2.66% increase compared to the same quarter of the previous year.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $4.57 per share and revenue of $31.67 billion. These results would represent year-over-year changes of -10.39% and +6.38%, respectively.
Any recent changes to analyst estimates for Paypal should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, there's been a 0.01% fall in the Zacks Consensus EPS estimate. As of now, Paypal holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Paypal has a Forward P/E ratio of 19.88 right now. This valuation marks a discount compared to its industry's average Forward P/E of 35.06.
Meanwhile, PYPL's PEG ratio is currently 1.66. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. PYPL's industry had an average PEG ratio of 2.44 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 34, placing it within the top 14% of over 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Paypal (PYPL) Registers a Bigger Fall Than the Market: Important Facts to Note
Paypal (PYPL - Free Report) closed the latest trading day at $89.40, indicating a -1.49% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.54%. At the same time, the Dow lost 0.53%, and the tech-heavy Nasdaq lost 0.66%.
Heading into today, shares of the technology platform and digital payments company had gained 3.94% over the past month, outpacing the Computer and Technology sector's gain of 3.76% and the S&P 500's gain of 1.5% in that time.
The investment community will be paying close attention to the earnings performance of Paypal in its upcoming release. The company is forecasted to report an EPS of $1.10, showcasing a 25.68% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.24 billion, indicating a 2.66% increase compared to the same quarter of the previous year.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $4.57 per share and revenue of $31.67 billion. These results would represent year-over-year changes of -10.39% and +6.38%, respectively.
Any recent changes to analyst estimates for Paypal should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, there's been a 0.01% fall in the Zacks Consensus EPS estimate. As of now, Paypal holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Paypal has a Forward P/E ratio of 19.88 right now. This valuation marks a discount compared to its industry's average Forward P/E of 35.06.
Meanwhile, PYPL's PEG ratio is currently 1.66. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. PYPL's industry had an average PEG ratio of 2.44 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 34, placing it within the top 14% of over 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.