Paypal (PYPL - Free Report) closed the most recent trading day at $84.05, moving +0.65% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.56%. Elsewhere, the Dow gained 0.76%, while the tech-heavy Nasdaq lost 0.38%.
Coming into today, shares of the technology platform and digital payments company had lost 0.98% in the past month. In that same time, the Computer and Technology sector lost 8.65%, while the S&P 500 lost 6.76%.
Investors will be hoping for strength from PYPL as it approaches its next earnings release, which is expected to be January 30, 2019. In that report, analysts expect PYPL to post earnings of $0.67 per share. This would mark year-over-year growth of 21.82%. Our most recent consensus estimate is calling for quarterly revenue of $4.24 billion, up 13.18% from the year-ago period.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $2.39 per share and revenue of $15.46 billion. These results would represent year-over-year changes of +25.79% and +18.08%, respectively.
Any recent changes to analyst estimates for PYPL should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 past month, the Zacks Consensus EPS estimate has moved 3.07% higher. PYPL currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, PYPL is holding a Forward P/E ratio of 34.93. For comparison, its industry has an average Forward P/E of 62.32, which means PYPL is trading at a discount to the group.
Also, we should mention that PYPL has a PEG ratio of 1.97. 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 industry currently had an average PEG ratio of 3.23 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 50, which puts it in the top 19% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.