Paypal (PYPL - Free Report) closed the most recent trading day at $112.57, moving +0.67% from the previous trading session. This change traded in line with S&P 500. Elsewhere, the Dow gained 0.74%, while the tech-heavy Nasdaq added 0.81%.
Prior to today's trading, shares of the technology platform and digital payments company had gained 5.98% over the past month. This has lagged the Computer and Technology sector's gain of 6.02% and outpaced the S&P 500's gain of 3.55% in that time.
Investors will be hoping for strength from PYPL as it approaches 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 16.96% from the year-ago period.
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. 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. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. PYPL currently has a Zacks Rank of #4 (Sell).
In terms of valuation, PYPL is currently trading at a Forward P/E ratio of 32.06. This valuation marks a discount compared to its industry's average Forward P/E of 55.13.
Meanwhile, PYPL's PEG ratio is currently 1.73. 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. PYPL's industry had an average PEG ratio of 2.47 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% 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.