In the latest trading session, Paypal (PYPL - Free Report) closed at $87.84, marking a -1.29% move from the previous day. This change lagged the S&P 500's 0% on the day. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq added 0.06%.
Heading into today, shares of the technology platform and digital payments company had lost 3.37% over the past month, lagging the Computer and Technology sector's loss of 0.1% and the S&P 500's gain of 0.78% in that time.
Wall Street will be looking for positivity from PYPL as it approaches its next earnings report date. This 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%. Meanwhile, our latest consensus estimate is calling for revenue of $3.67 billion, up 13.28% from the prior-year quarter.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $2.34 per share and revenue of $15.44 billion. These results would represent year-over-year changes of +23.16% and +17.89%, respectively.
Investors should also note any recent changes to analyst estimates for PYPL. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.16% lower within the past month. PYPL is currently a Zacks Rank #3 (Hold).
Looking at its valuation, PYPL is holding a Forward P/E ratio of 38.07. This valuation marks a discount compared to its industry's average Forward P/E of 70.21.
Meanwhile, PYPL's PEG ratio is currently 2.14. 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. The Internet - Software was holding an average PEG ratio of 4.16 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 82, putting it in the top 32% 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.
To follow PYPL in the coming trading sessions, be sure to utilize Zacks.com.