Paypal (PYPL - Free Report) closed the most recent trading day at $85.82, moving +1.94% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.15%. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq gained 0.42%.
Heading into today, shares of the technology platform and digital payments company had lost 4.58% over the past month, lagging the Computer and Technology sector's loss of 1.79% and the S&P 500's loss of 1.1% 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. Meanwhile, our latest consensus estimate is calling for revenue of $4.24 billion, up 13.18% from the prior-year quarter.
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.
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 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.
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 remained stagnant within the past month. 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 35.18 right now. Its industry sports an average Forward P/E of 56.86, so we one might conclude that PYPL is trading at a discount comparatively.
We can also see that PYPL currently has a PEG ratio of 1.93. 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. The Internet - Software was holding an average PEG ratio of 2.9 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 28, which puts it in the top 11% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.