In the latest trading session, Paypal (PYPL - Free Report) closed at $97.39, marking a +1.78% move from the previous day. This move outpaced the S&P 500's daily gain of 1.47%. At the same time, the Dow added 0.79%, and the tech-heavy Nasdaq gained 2.02%.
Prior to today's trading, shares of the technology platform and digital payments company had gained 5.33% over the past month. This has outpaced the Computer and Technology sector's gain of 2.44% and the S&P 500's gain of 1.5% in that time.
Wall Street will be looking for positivity from PYPL as it approaches its next earnings report date. The company is expected to report EPS of $0.67, up 17.54% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.12 billion, up 11.85% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.88 per share and revenue of $18 billion, which would represent changes of +19.01% and +16.47%, 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.31% higher. PYPL is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, PYPL currently has a Forward P/E ratio of 33.27. For comparison, its industry has an average Forward P/E of 56.91, which means PYPL is trading at a discount to the group.
We can also see that PYPL currently has a PEG ratio of 1.86. 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 2.86 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 53, which puts it in the top 21% 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.
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