Paypal (PYPL - Free Report) closed the most recent trading day at $75.90, moving +0.6% from the previous trading session. This change outpaced the S&P 500's 2.06% loss on the day. Elsewhere, the Dow lost 2.13%, while the tech-heavy Nasdaq lost 1.25%.
Coming into today, shares of the technology platform and digital payments company had lost 18.34% in the past month. In that same time, the Computer and Technology sector lost 6.61%, while the S&P 500 lost 3.01%.
Investors will be hoping for strength from PYPL as it approaches its next earnings release, which is expected to be October 18, 2018. The company is expected to report EPS of $0.54, up 17.39% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.67 billion, up 13.16% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.35 per share and revenue of $15.43 billion. These totals would mark changes of +23.68% and +17.86%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for PYPL. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% higher. PYPL is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note PYPL's current valuation metrics, including its Forward P/E ratio of 32.13. For comparison, its industry has an average Forward P/E of 61.32, which means PYPL is trading at a discount to the group.
We can also see that PYPL currently has a PEG ratio of 1.81. 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. PYPL's industry had an average PEG ratio of 3.79 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.