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Paypal (PYPL) Advances While Market Declines: Some Information for Investors

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In the latest close session, Paypal (PYPL - Free Report) was up +1.24% at $45.65. This change outpaced the S&P 500's 0.45% loss on the day. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 1.16%.

Heading into today, shares of the technology platform and digital payments company had gained 9.28% over the past month, outpacing the Business Services sector's gain of 4.05% and the S&P 500's gain of 2.14%.

The upcoming earnings release of Paypal will be of great interest to investors. The company's earnings report is expected on July 28, 2026. The company's upcoming EPS is projected at $1.28, signifying a 8.57% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $8.52 billion, showing a 2.76% escalation compared to the year-ago quarter.

PYPL's full-year Zacks Consensus Estimates are calling for earnings of $5.32 per share and revenue of $34.32 billion. These results would represent year-over-year changes of +0.19% and +3.47%, respectively.

It is also important to note the recent changes to analyst estimates for Paypal. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.32% higher within the past month. Paypal presently features a Zacks Rank of #4 (Sell).

Investors should also note Paypal's current valuation metrics, including its Forward P/E ratio of 8.48. This denotes a discount relative to the industry average Forward P/E of 11.44.

One should further note that PYPL currently holds a PEG ratio of 1.12. 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 Financial Transaction Services industry currently had an average PEG ratio of 0.82 as of yesterday's close.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 27% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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