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Paypal (PYPL) Exceeds Market Returns: Some Facts to Consider

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Paypal (PYPL - Free Report) closed the most recent trading day at $71.29, moving +2.95% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.37%. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq added 0.71%.

Shares of the technology platform and digital payments company have appreciated by 1.45% over the course of the past month, underperforming the Business Services sector's gain of 2.24%, and the S&P 500's gain of 4.26%.

Analysts and investors alike will be keeping a close eye on the performance of Paypal in its upcoming earnings disclosure. The company's earnings report is set to go public on October 28, 2025. The company is predicted to post an EPS of $1.21, indicating a 0.83% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $8.21 billion, indicating a 4.65% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.23 per share and revenue of $33.06 billion, which would represent changes of +12.47% and +3.97%, respectively, from the prior year.

Any recent changes to analyst estimates for Paypal should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.2% higher. Paypal is currently a Zacks Rank #2 (Buy).

Looking at valuation, Paypal is presently trading at a Forward P/E ratio of 13.23. This indicates a discount in contrast to its industry's Forward P/E of 14.21.

We can also see that PYPL currently has a PEG ratio of 1.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PYPL's industry had an average PEG ratio of 1.18 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 33, finds itself in the top 14% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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