In the latest trading session, Paypal (PYPL) closed at $60.29, marking a -1.17% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 2.36% for the day. Meanwhile, the Dow experienced a drop of 2.48%, and the technology-dominated Nasdaq saw a decrease of 2.55%.
Shares of the technology platform and digital payments company have depreciated by 13.09% over the course of the past month, underperforming the Business Services sector's loss of 1.14% and the S&P 500's loss of 5.6%.
Investors will be eagerly watching for the performance of Paypal in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 29, 2025. In that report, analysts expect Paypal to post earnings of $1.15 per share. This would mark a year-over-year decline of 17.86%. Alongside, our most recent consensus estimate is anticipating revenue of $7.82 billion, indicating a 1.56% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.99 per share and revenue of $32.98 billion, indicating changes of +7.31% and +3.71%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Paypal. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 has moved 0.71% lower. Paypal is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Paypal is presently trading at a Forward P/E ratio of 12.23. This valuation marks a discount compared to its industry's average Forward P/E of 14.61.
We can additionally observe that PYPL currently boasts a PEG ratio of 1.09. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 1.32.
The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 88, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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