Paypal (PYPL - Free Report) closed the most recent trading day at $86.93, moving +0.77% from the previous trading session. This change outpaced the S&P 500's 0.7% gain on the day. At the same time, the Dow added 0.42%, and the tech-heavy Nasdaq gained 1.26%.
Heading into today, shares of the technology platform and digital payments company had gained 0.52% over the past month, outpacing the Computer and Technology sector's loss of 4.86% and the S&P 500's loss of 6.13% 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 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 13.21% from the year-ago period.
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.
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.
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 has moved 1.16% lower within the past month. PYPL is currently a Zacks Rank #4 (Sell).
Digging into valuation, PYPL currently has a Forward P/E ratio of 29.92. This represents a discount compared to its industry's average Forward P/E of 44.32.
Also, we should mention that PYPL has a PEG ratio of 1.64. 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 2.69 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 36, putting it in the top 15% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.