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Paypal (PYPL) Registers a Bigger Fall Than the Market: Important Facts to Note

The most recent trading session ended with Paypal (PYPL) standing at $60.64, reflecting a -1.47% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a loss of 0.04% for the day. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, added 0.12%.

Coming into today, shares of the technology platform and digital payments company had lost 3.99% in the past month. In that same time, the Computer and Technology sector lost 2.27%, while the S&P 500 gained 4.15%.

Market participants will be closely following the financial results of Paypal in its upcoming release. It is anticipated that the company will report an EPS of $0.95, marking a 18.1% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $7.78 billion, showing a 6.7% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.14 per share and revenue of $31.94 billion, which would represent changes of -18.82% and +7.28%, respectively, from the prior year.

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It's also important for investors to be aware of any recent modifications to analyst estimates for Paypal. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Paypal presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Paypal is presently being traded at a Forward P/E ratio of 14.88. This signifies a discount in comparison to the average Forward P/E of 30.07 for its industry.

Meanwhile, PYPL's PEG ratio is currently 1.01. 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 average PEG ratio for the Internet - Software industry stood at 1.69 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 31% of over 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report

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