Yahoo Finance Paypal (PYPL) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Paypal (PYPL) closed at $269.49, marking a -0.16% move from the previous day. This move lagged the S&P 500's daily loss of 0.08%.
Heading into today, shares of the technology platform and digital payments company had lost 2.55% over the past month, lagging the Computer and Technology sector's loss of 0.11% and the S&P 500's loss of 1.81% in that time.
Investors will be hoping for strength from PYPL as it approaches its next earnings release. In that report, analysts expect PYPL to post earnings of $1.07 per share. This would mark no growth from the year-ago period. Our most recent consensus estimate is calling for quarterly revenue of $6.22 billion, up 13.96% from the year-ago period.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $4.73 per share and revenue of $25.77 billion. These results would represent year-over-year changes of +21.91% and +20.1%, respectively.
It is also important to note the recent changes to analyst estimates for PYPL. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 57.11. This represents a no noticeable deviation compared to its industry's average Forward P/E of 57.11.
We can also see that PYPL currently has a PEG ratio of 2.63. 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. The Internet - Software industry currently had an average PEG ratio of 3.98 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 208, putting it in the bottom 19% 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.
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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
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