Paypal (PYPL - Free Report) closed at $88.99 in the latest trading session, marking a -0.07% move from the prior day. This change outpaced the S&P 500's 0.37% loss on the day. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 0.91%.
Prior to today's trading, shares of the technology platform and digital payments company had gained 2.66% over the past month. This has outpaced the Computer and Technology sector's gain of 1.44% and the S&P 500's gain of 1.96% in that time.
PYPL will be looking to display strength as it nears its next earnings release, which is expected to be October 18, 2018. In that report, analysts expect PYPL to post earnings of $0.54 per share. This would mark year-over-year growth of 17.39%. Our most recent consensus estimate is calling for quarterly revenue of $3.67 billion, up 13.18% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.34 per share and revenue of $15.47 billion. These totals would mark changes of +23.16% and +18.14%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for PYPL. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. PYPL is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that PYPL has a Forward P/E ratio of 38.06 right now. This valuation marks a discount compared to its industry's average Forward P/E of 69.24.
Also, we should mention that PYPL has a PEG ratio of 2.16. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Software stocks are, on average, holding a PEG ratio of 3.64 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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.