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Paypal (PYPL) Stock Sinks As Market Gains: Here's Why
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Paypal (PYPL - Free Report) ended the recent trading session at $43.18, demonstrating a -2.7% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.79% for the day. Meanwhile, the Dow experienced a rise of 0.26%, and the technology-dominated Nasdaq saw an increase of 1.52%.
The technology platform and digital payments company's shares have seen a decrease of 1.79% over the last month, not keeping up with the Business Services sector's loss of 0.14% and outstripping the S&P 500's loss of 1.82%.
The investment community will be paying close attention to the earnings performance of Paypal in its upcoming release. On that day, Paypal is projected to report earnings of $1.28 per share, which would represent a year-over-year decline of 8.57%. Simultaneously, our latest consensus estimate expects the revenue to be $8.5 billion, showing a 2.58% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.3 per share and revenue of $34.26 billion, indicating changes of -0.19% and +3.29%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Paypal. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Paypal is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Paypal is currently trading at a Forward P/E ratio of 8.37. Its industry sports an average Forward P/E of 10.16, so one might conclude that Paypal is trading at a discount comparatively.
It's also important to note that PYPL currently trades at a PEG ratio of 1.11. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial Transaction Services was holding an average PEG ratio of 0.78 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
View the Zacks #1 Rank List
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Paypal (PYPL) Stock Sinks As Market Gains: Here's Why
Paypal (PYPL - Free Report) ended the recent trading session at $43.18, demonstrating a -2.7% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.79% for the day. Meanwhile, the Dow experienced a rise of 0.26%, and the technology-dominated Nasdaq saw an increase of 1.52%.
The technology platform and digital payments company's shares have seen a decrease of 1.79% over the last month, not keeping up with the Business Services sector's loss of 0.14% and outstripping the S&P 500's loss of 1.82%.
The investment community will be paying close attention to the earnings performance of Paypal in its upcoming release. On that day, Paypal is projected to report earnings of $1.28 per share, which would represent a year-over-year decline of 8.57%. Simultaneously, our latest consensus estimate expects the revenue to be $8.5 billion, showing a 2.58% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.3 per share and revenue of $34.26 billion, indicating changes of -0.19% and +3.29%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Paypal. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Paypal is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Paypal is currently trading at a Forward P/E ratio of 8.37. Its industry sports an average Forward P/E of 10.16, so one might conclude that Paypal is trading at a discount comparatively.
It's also important to note that PYPL currently trades at a PEG ratio of 1.11. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial Transaction Services was holding an average PEG ratio of 0.78 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.