Paypal (PYPL - Free Report) closed at $105.51 in the latest trading session, marking a +1.82% move from the prior day. This move outpaced the S&P 500's daily gain of 0.29%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.44%.
Prior to today's trading, shares of the technology platform and digital payments company had gained 1.56% over the past month. This has outpaced the Computer and Technology sector's gain of 1.17% and the S&P 500's gain of 1.51% in that time.
PYPL will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.83, up 20.29% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.94 billion, up 16.99% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.07 per share and revenue of $17.76 billion. These totals would mark changes of +26.86% and +14.92%, respectively, from last year.
Any recent changes to analyst estimates for PYPL should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. PYPL is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that PYPL has a Forward P/E ratio of 33.71 right now. For comparison, its industry has an average Forward P/E of 58.89, which means PYPL is trading at a discount to the group.
It is also worth noting that PYPL currently has a PEG ratio of 1.83. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.84 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 37% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.