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Paypal (PYPL) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest trading session, Paypal (PYPL - Free Report) closed at $66.74, marking a -1.65% move from the previous day. This move lagged the S&P 500's daily loss of 0.5%. On the other hand, the Dow registered a loss of 0.38%, and the technology-centric Nasdaq decreased by 0.5%.

Heading into today, shares of the technology platform and digital payments company had lost 2.57% over the past month, lagging the Business Services sector's loss of 0.74% and the S&P 500's gain of 2.74%.

The upcoming earnings release of Paypal will be of great interest to investors. The company's earnings report is expected on October 28, 2025. The company is forecasted to report an EPS of $1.21, showcasing a 0.83% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $8.21 billion, up 4.65% from the year-ago period.

PYPL's full-year Zacks Consensus Estimates are calling for earnings of $5.23 per share and revenue of $33.06 billion. These results would represent year-over-year changes of +12.47% and +3.97%, respectively.

Investors should also note any recent changes to analyst estimates for Paypal. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.2% higher. At present, Paypal boasts a Zacks Rank of #2 (Buy).

In terms of valuation, Paypal is currently trading at a Forward P/E ratio of 12.96. For comparison, its industry has an average Forward P/E of 14.97, which means Paypal is trading at a discount to the group.

One should further note that PYPL currently holds a PEG ratio of 1.05. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 1.19.

The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 56, positioning it in the top 23% 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.

To follow PYPL in the coming trading sessions, be sure to utilize Zacks.com.


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