In the latest trading session, Paypal (PYPL) closed at $60.74, marking a -1.49% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.16%. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq decreased by 0.59%.
Shares of the technology platform and digital payments company have depreciated by 1.83% over the course of the past month, underperforming the Business Services sector's gain of 2.61%, and the S&P 500's loss of 0.21%.
Analysts and investors alike will be keeping a close eye on the performance of Paypal in its upcoming earnings disclosure. The company is expected to report EPS of $1.29, up 8.4% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.79 billion, up 5.06% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.34 per share and revenue of $33.29 billion, indicating changes of +14.84% and +4.7%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Paypal. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% lower. Paypal is currently a Zacks Rank #3 (Hold).
In terms of valuation, Paypal is presently being traded at a Forward P/E ratio of 11.55. This indicates a discount in contrast to its industry's Forward P/E of 14.86.
One should further note that PYPL currently holds a PEG ratio of 0.84. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial Transaction Services was holding an average PEG ratio of 1.05 at yesterday's closing price.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 172, placing it within the bottom 31% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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