Paypal (PYPL) ended the recent trading session at $68.86, demonstrating a -1.4% change from the preceding day's closing price. This change lagged the S&P 500's 1.56% gain on the day. On the other hand, the Dow registered a gain of 1.29%, and the technology-centric Nasdaq increased by 2.21%.
Shares of the technology platform and digital payments company witnessed a gain of 4.41% over the previous month, beating the performance of the Business Services sector with its loss of 3.52%, and the S&P 500's gain of 0.41%.
The upcoming earnings release of Paypal will be of great interest to investors. The company's earnings report is expected on October 28, 2025. The company is expected to report EPS of $1.21, up 0.83% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $8.2 billion, indicating a 4.55% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.23 per share and a revenue of $33.05 billion, signifying shifts of +12.47% and +3.94%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Paypal. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 has moved 0% higher. At present, Paypal boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Paypal has a Forward P/E ratio of 13.34 right now. For comparison, its industry has an average Forward P/E of 14.35, which means Paypal is trading at a discount to the group.
We can also see that PYPL currently has a PEG ratio of 1.08. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 1.15.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 13% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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