Paypal (PYPL - Free Report) closed the most recent trading day at $108.76, moving -1.8% from the previous trading session. This change lagged the S&P 500's 0.71% loss on the day. Elsewhere, the Dow lost 0.81%, while the tech-heavy Nasdaq lost 0.79%.
Heading into today, shares of the technology platform and digital payments company had gained 5.89% over the past month, lagging the Computer and Technology sector's gain of 7.25% and outpacing the S&P 500's gain of 4.77% in that time.
Wall Street will be looking for positivity from PYPL as it approaches its next earnings report date. On that day, PYPL is projected to report earnings of $0.83 per share, which would represent year-over-year growth of 20.29%. Meanwhile, our latest consensus estimate is calling for revenue of $4.94 billion, up 16.96% from the prior-year quarter.
It is also important to note the 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.
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.
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 0.1% higher. PYPL currently has a Zacks Rank of #4 (Sell).
In terms of valuation, PYPL is currently trading at a Forward P/E ratio of 31.75. This valuation marks a discount compared to its industry's average Forward P/E of 52.83.
Also, we should mention that PYPL has a PEG ratio of 1.72. 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. PYPL's industry had an average PEG ratio of 2.32 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 157, putting it in the bottom 39% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.