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Paypal (PYPL) Ascends While Market Falls: Some Facts to Note

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Paypal (PYPL - Free Report) closed at $75.30 in the latest trading session, marking a +1.31% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.11% for the day. At the same time, the Dow added 0.91%, and the tech-heavy Nasdaq lost 0.82%.

Shares of the technology platform and digital payments company witnessed a gain of 4.78% over the previous month, beating the performance of the Business Services sector with its loss of 0.76%, and underperforming the S&P 500's gain of 5.17%.

The upcoming earnings release of Paypal will be of great interest to investors. The company's earnings report is expected on July 29, 2025. The company's earnings per share (EPS) are projected to be $1.29, reflecting a 8.4% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.08 billion, up 2.5% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.08 per share and revenue of $32.74 billion, which would represent changes of +9.25% and +2.95%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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 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, there's been a 0.02% rise in the Zacks Consensus EPS estimate. As of now, Paypal holds a Zacks Rank of #2 (Buy).

Looking at its valuation, Paypal is holding a Forward P/E ratio of 14.62. For comparison, its industry has an average Forward P/E of 16.34, which means Paypal is trading at a discount to the group.

We can also see that PYPL currently has a PEG ratio of 1.23. 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. PYPL's industry had an average PEG ratio of 1.26 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 58, which puts it in the top 24% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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