Paypal (PYPL - Free Report) closed the most recent trading day at $108.73, moving -0.93% from the previous trading session. This change lagged the S&P 500's 2.14% gain on the day. Elsewhere, the Dow gained 2.06%, while the tech-heavy Nasdaq added 2.65%.
Coming into today, shares of the technology platform and digital payments company had lost 4.81% in the past month. In that same time, the Computer and Technology sector lost 10.97%, while the S&P 500 lost 6.63%.
PYPL will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.69, up 18.97% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.33 billion, up 12.3% from the prior-year quarter.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $2.98 per share and revenue of $18 billion. These results would represent year-over-year changes of +23.14% and +16.51%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. PYPL is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, PYPL is holding a Forward P/E ratio of 35.38. Its industry sports an average Forward P/E of 54.3, so we one might conclude that PYPL is trading at a discount comparatively.
Also, we should mention that PYPL has a PEG ratio of 1.98. 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 2.63 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 75, putting it in the top 30% 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.
To follow PYPL in the coming trading sessions, be sure to utilize Zacks.com.