In the latest trading session, Paypal (PYPL) closed at $72.47, marking a -0.45% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.53%. On the other hand, the Dow registered a loss of 0.26%, and the technology-centric Nasdaq decreased by 0.83%.
The technology platform and digital payments company's shares have seen an increase of 5.98% over the last month, surpassing the Business Services sector's loss of 0.45% and the S&P 500's gain of 5.17%.
The investment community will be closely monitoring the performance of Paypal in its forthcoming earnings report. The company is scheduled to release its earnings on July 29, 2025. The company's earnings per share (EPS) are projected to be $1.28, reflecting a 7.56% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.12 billion, up 2.93% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.08 per share and revenue of $32.82 billion. These totals would mark changes of +9.25% and +3.22%, respectively, from last year.
Any recent changes to analyst estimates for Paypal should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.22% rise in the Zacks Consensus EPS estimate. Paypal is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Paypal is holding a Forward P/E ratio of 14.33. This indicates a discount in contrast to its industry's Forward P/E of 15.28.
One should further note that PYPL currently holds a PEG ratio of 1.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Financial Transaction Services industry currently had an average PEG ratio of 1.3 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 58, this industry ranks in the top 24% of all industries, numbering over 250.
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.
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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