In the latest trading session, Paypal (PYPL) closed at $72.96, marking a -1.26% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.4%. At the same time, the Dow lost 0.98%, and the tech-heavy Nasdaq gained 0.18%.
Heading into today, shares of the technology platform and digital payments company had gained 2.26% over the past month, outpacing the Business Services sector's gain of 0.01% and lagging the S&P 500's gain of 4.97%.
Analysts and investors alike will be keeping a close eye on the performance of Paypal in its upcoming earnings disclosure. The company's earnings report is set to go public on July 29, 2025. In that report, analysts expect Paypal to post earnings of $1.29 per share. This would mark year-over-year growth of 8.4%. At the same time, our most recent consensus estimate is projecting a revenue of $8.09 billion, reflecting a 2.55% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.09 per share and a revenue of $32.73 billion, signifying shifts of +9.46% and +2.92%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Paypal. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 last 30 days, the Zacks Consensus EPS estimate has moved 0.04% higher. Paypal currently has a Zacks Rank of #3 (Hold).
Investors should also note Paypal's current valuation metrics, including its Forward P/E ratio of 14.53. This valuation marks a discount compared to its industry average Forward P/E of 16.33.
We can additionally observe that PYPL currently boasts a PEG ratio of 1.21. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial Transaction Services was holding an average PEG ratio of 1.3 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 93, putting it in the top 38% of all 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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PayPal Holdings, Inc. (PYPL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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