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Paypal (PYPL) Surpasses Market Returns: Some Facts Worth Knowing
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In the latest trading session, Paypal (PYPL - Free Report) closed at $46.13, marking a +1.56% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.25%. Meanwhile, the Dow experienced a rise of 0.1%, and the technology-dominated Nasdaq saw an increase of 0.47%.
Coming into today, shares of the technology platform and digital payments company had gained 12.73% in the past month. In that same time, the Business Services sector lost 1.02%, while the S&P 500 lost 1.88%.
Investors will be eagerly watching for the performance of Paypal in its upcoming earnings disclosure. On that day, Paypal is projected to report earnings of $1.29 per share, which would represent a year-over-year decline of 3.01%. Alongside, our most recent consensus estimate is anticipating revenue of $8.13 billion, indicating a 4.33% upward movement from the same quarter last year.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $5.34 per share and revenue of $34.19 billion. These results would represent year-over-year changes of +0.56% and +3.06%, respectively.
Investors should also note any recent changes to analyst estimates for Paypal. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.64% lower. Paypal currently has a Zacks Rank of #4 (Sell).
In the context of valuation, Paypal is at present trading with a Forward P/E ratio of 8.5. This indicates a discount in contrast to its industry's Forward P/E of 11.93.
We can additionally observe that PYPL currently boasts a PEG ratio of 1.35. 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. The average PEG ratio for the Financial Transaction Services industry stood at 0.92 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 148, which puts it in the bottom 40% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Paypal (PYPL) Surpasses Market Returns: Some Facts Worth Knowing
In the latest trading session, Paypal (PYPL - Free Report) closed at $46.13, marking a +1.56% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.25%. Meanwhile, the Dow experienced a rise of 0.1%, and the technology-dominated Nasdaq saw an increase of 0.47%.
Coming into today, shares of the technology platform and digital payments company had gained 12.73% in the past month. In that same time, the Business Services sector lost 1.02%, while the S&P 500 lost 1.88%.
Investors will be eagerly watching for the performance of Paypal in its upcoming earnings disclosure. On that day, Paypal is projected to report earnings of $1.29 per share, which would represent a year-over-year decline of 3.01%. Alongside, our most recent consensus estimate is anticipating revenue of $8.13 billion, indicating a 4.33% upward movement from the same quarter last year.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $5.34 per share and revenue of $34.19 billion. These results would represent year-over-year changes of +0.56% and +3.06%, respectively.
Investors should also note any recent changes to analyst estimates for Paypal. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.64% lower. Paypal currently has a Zacks Rank of #4 (Sell).
In the context of valuation, Paypal is at present trading with a Forward P/E ratio of 8.5. This indicates a discount in contrast to its industry's Forward P/E of 11.93.
We can additionally observe that PYPL currently boasts a PEG ratio of 1.35. 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. The average PEG ratio for the Financial Transaction Services industry stood at 0.92 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 148, which puts it in the bottom 40% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.