In the latest trading session, Paypal (PYPL - Free Report) closed at $81.97, marking a +1.37% move from the previous day. This change outpaced the S&P 500's 0.33% gain on the day. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.01%.
Heading into today, shares of the technology platform and digital payments company had lost 0.36% over the past month, outpacing the Computer and Technology sector's loss of 1.56% and lagging the S&P 500's gain of 0.89% in that time.
Investors will be hoping for strength from PYPL as it approaches its next earnings release, which is expected to be January 30, 2019. The company is expected to report EPS of $0.67, up 21.82% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.24 billion, up 13.18% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.39 per share and revenue of $15.46 billion, which would represent changes of +25.79% and +18.08%, respectively, from the prior year.
Any recent changes to analyst estimates for PYPL should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PYPL currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that PYPL has a Forward P/E ratio of 33.79 right now. Its industry sports an average Forward P/E of 52.8, so we one might conclude that PYPL is trading at a discount comparatively.
Investors should also note that PYPL has a PEG ratio of 1.85 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PYPL's industry had an average PEG ratio of 2.96 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 31, which puts it in the top 12% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.