Paypal (PYPL - Free Report) closed at $108.61 in the latest trading session, marking a -0.13% move from the prior day. This change lagged the S&P 500's daily gain of 0.09%. Elsewhere, the Dow gained 0.34%, while the tech-heavy Nasdaq added 0.23%.
Coming into today, shares of the technology platform and digital payments company had gained 6.05% in the past month. In that same time, the Computer and Technology sector gained 4.31%, while the S&P 500 gained 3.81%.
PYPL will be looking to display strength as it nears its next earnings release. On that day, PYPL is projected to report earnings of $0.83 per share, which would represent year-over-year growth of 20.29%. Our most recent consensus estimate is calling for quarterly revenue of $4.94 billion, up 16.96% 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 +14.91%, respectively, from last year.
Investors might also notice 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. PYPL is currently a Zacks Rank #3 (Hold).
Investors should also note PYPL's current valuation metrics, including its Forward P/E ratio of 35.38. Its industry sports an average Forward P/E of 59.27, so we one might conclude that PYPL is trading at a discount comparatively.
Meanwhile, PYPL's PEG ratio is currently 1.91. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.8 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 95, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.