Paypal (PYPL - Free Report) closed at $85.26 in the latest trading session, marking a -1.64% move from the prior day. This change was narrower than the S&P 500's daily loss of 2.93%. Elsewhere, the Dow lost 3.04%, while the tech-heavy Nasdaq lost 0.27%.
Prior to today's trading, shares of the technology platform and digital payments company had lost 29.2% over the past month. This has traded in line with the Computer and Technology sector and was narrower than the S&P 500's loss of 31.71% 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 $0.78, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.80 billion, up 16.28% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.45 per share and revenue of $20.85 billion, which would represent changes of +11.29% and +17.32%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for PYPL. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.06% lower. PYPL is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note PYPL's current valuation metrics, including its Forward P/E ratio of 25.14. This represents a discount compared to its industry's average Forward P/E of 29.95.
Investors should also note that PYPL has a PEG ratio of 1.37 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PYPL's industry had an average PEG ratio of 1.79 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 97, putting it in the top 39% 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.