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

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Paypal (PYPL - Free Report) closed at $69.20 in the latest trading session, marking a +2.66% move from the prior day. This change outpaced the S&P 500's 1.07% gain on the day. Elsewhere, the Dow saw an upswing of 1.12%, while the tech-heavy Nasdaq appreciated by 1.37%.

The technology platform and digital payments company's stock has dropped by 1.19% in the past month, exceeding the Business Services sector's loss of 5.09% and lagging the S&P 500's gain of 1.08%.

Market participants will be closely following the financial results of Paypal in its upcoming release. The company plans to announce its earnings on October 28, 2025. It is anticipated that the company will report an EPS of $1.19, marking a 0.83% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $8.2 billion, showing a 4.54% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.23 per share and revenue of $33.04 billion. These totals would mark changes of +12.47% and +3.92%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Paypal. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% decrease. Paypal is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Paypal is currently exchanging hands at a Forward P/E ratio of 12.88. This expresses a discount compared to the average Forward P/E of 13.82 of its industry.

Investors should also note that PYPL has a PEG ratio of 1.04 right now. 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 1.13.

The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 90, positioning it in the top 37% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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