In the latest trading session, Paypal (PYPL - Free Report) closed at $106.93, marking a +0.34% move from the previous day. This move outpaced the S&P 500's daily loss of 0.61%. At the same time, the Dow lost 0.72%, and the tech-heavy Nasdaq lost 0.56%.
Heading into today, shares of the technology platform and digital payments company had gained 9.36% over the past month, outpacing the Computer and Technology sector's gain of 7.18% and the S&P 500's gain of 5.68% in that time.
PYPL will be looking to display strength as it nears its next earnings release, which is expected to be April 24, 2019. 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.88 per share and revenue of $18 billion. These totals would mark changes of +19.01% and +16.48%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for PYPL. Recent revisions tend to reflect the latest 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.19% higher. PYPL is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, PYPL currently has a Forward P/E ratio of 37.02. For comparison, its industry has an average Forward P/E of 55.52, which means PYPL is trading at a discount to the group.
We can also see that PYPL currently has a PEG ratio of 2.07. 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 was holding an average PEG ratio of 3.17 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 71, which puts it in the top 28% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.