In the latest trading session, Paypal (PYPL) closed at $70.83, marking a -5.32% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 1.13%. Elsewhere, the Dow saw a downswing of 1.79%, while the tech-heavy Nasdaq depreciated by 1.3%.
The technology platform and digital payments company's shares have seen an increase of 4.53% over the last month, surpassing the Business Services sector's gain of 0.81% and the S&P 500's gain of 3.55%.
Analysts and investors alike will be keeping a close eye on the performance of Paypal in its upcoming earnings disclosure. The company's earnings report is set to go public on July 29, 2025. On that day, Paypal is projected to report earnings of $1.29 per share, which would represent year-over-year growth of 8.4%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.12 billion, up 2.93% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.08 per share and a revenue of $32.82 billion, representing changes of +9.25% and +3.22%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Paypal. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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 last 30 days, the Zacks Consensus EPS estimate has moved 0.22% higher. Right now, Paypal possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Paypal is currently trading at a Forward P/E ratio of 14.72. This indicates a discount in contrast to its industry's Forward P/E of 15.91.
We can also see that PYPL currently has a PEG ratio of 1.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Financial Transaction Services industry had an average PEG ratio of 1.37 as trading concluded yesterday.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 52, this industry ranks in the top 22% of all industries, numbering over 250.
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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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