Paypal (PYPL) ended the recent trading session at $55.89, demonstrating a +1.47% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 1.16%. On the other hand, the Dow registered a gain of 1.21%, and the technology-centric Nasdaq increased by 1.18%.
Coming into today, shares of the technology platform and digital payments company had lost 7.29% in the past month. In that same time, the Business Services sector lost 3.02%, while the S&P 500 lost 0.42%.
The investment community will be paying close attention to the earnings performance of Paypal in its upcoming release. The company is predicted to post an EPS of $1.29, indicating a 8.4% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $8.76 billion, reflecting a 4.73% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.33 per share and a revenue of $33.24 billion, indicating changes of +14.62% and 0%, respectively, from the former year.
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 a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, 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 1.51% lower. Paypal currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, Paypal is holding a Forward P/E ratio of 9.55. This indicates a discount in contrast to its industry's Forward P/E of 12.35.
We can additionally observe that PYPL currently boasts a PEG ratio of 0.69. 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. The average PEG ratio for the Financial Transaction Services industry stood at 0.93 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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