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Paypal (PYPL) Exceeds Market Returns: Some Facts to Consider
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In the latest trading session, Paypal (PYPL - Free Report) closed at $60.04, marking a +1.06% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.32% for the day. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.22%.
The technology platform and digital payments company's shares have seen a decrease of 2.96% over the last month, not keeping up with the Business Services sector's gain of 8.06% and the S&P 500's gain of 4.7%.
Market participants will be closely following the financial results of Paypal in its upcoming release. On that day, Paypal is projected to report earnings of $1.29 per share, which would represent year-over-year growth of 8.4%. Meanwhile, the latest consensus estimate predicts the revenue to be $8.79 billion, indicating a 5.01% increase compared to the same quarter of the previous year.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $5.34 per share and revenue of $33.29 billion. These results would represent year-over-year changes of +14.84% and +4.69%, respectively.
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 such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 moved 0.06% lower. Paypal currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Paypal is presently being traded at a Forward P/E ratio of 11.13. This signifies a discount in comparison to the average Forward P/E of 14.55 for its industry.
Also, we should mention that PYPL has a PEG ratio of 0.81. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. PYPL's industry had an average PEG ratio of 1.04 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 165, finds itself in the bottom 34% echelons 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Paypal (PYPL) Exceeds Market Returns: Some Facts to Consider
In the latest trading session, Paypal (PYPL - Free Report) closed at $60.04, marking a +1.06% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.32% for the day. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.22%.
The technology platform and digital payments company's shares have seen a decrease of 2.96% over the last month, not keeping up with the Business Services sector's gain of 8.06% and the S&P 500's gain of 4.7%.
Market participants will be closely following the financial results of Paypal in its upcoming release. On that day, Paypal is projected to report earnings of $1.29 per share, which would represent year-over-year growth of 8.4%. Meanwhile, the latest consensus estimate predicts the revenue to be $8.79 billion, indicating a 5.01% increase compared to the same quarter of the previous year.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $5.34 per share and revenue of $33.29 billion. These results would represent year-over-year changes of +14.84% and +4.69%, respectively.
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 such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 moved 0.06% lower. Paypal currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Paypal is presently being traded at a Forward P/E ratio of 11.13. This signifies a discount in comparison to the average Forward P/E of 14.55 for its industry.
Also, we should mention that PYPL has a PEG ratio of 0.81. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. PYPL's industry had an average PEG ratio of 1.04 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 165, finds itself in the bottom 34% echelons 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.
You can find more information on all of these metrics, and much more, on Zacks.com.