In the latest trading session, Paypal (PYPL) closed at $55.51, marking a -1.93% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.41%. Meanwhile, the Dow experienced a drop of 0.83%, and the technology-dominated Nasdaq saw an increase of 0.91%.
Shares of the technology platform and digital payments company have depreciated by 4.86% over the course of the past month, outperforming the Business Services sector's loss of 4.89%, and lagging the S&P 500's gain of 0.38%.
The upcoming earnings release of Paypal will be of great interest to investors. The company's earnings report is expected on February 3, 2026. The company is forecasted to report an EPS of $1.28, showcasing a 7.56% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $8.77 billion, reflecting a 4.79% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.34 per share and a revenue of $33.26 billion, signifying shifts of +14.84% and 0%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Paypal. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.85% lower. Paypal is currently a Zacks Rank #4 (Sell).
With respect to valuation, Paypal is currently being traded at a Forward P/E ratio of 9.85. This signifies a discount in comparison to the average Forward P/E of 13.11 for its industry.
It's also important to note that PYPL currently trades at a PEG ratio of 0.71. 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 average PEG ratio for the Financial Transaction Services industry stood at 0.97 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 174, positioning it in the bottom 29% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PayPal Holdings, Inc. (PYPL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
