Paypal (PYPL) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Paypal (PYPL) closed at $203.60, marking a -1.99% move from the previous day. This move lagged the S&P 500's daily loss of 0.66%. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq lost 0.8%.
Prior to today's trading, shares of the technology platform and digital payments company had gained 11.68% over the past month. This has outpaced the Computer and Technology sector's gain of 8.25% and the S&P 500's gain of 5.22% in that time.
Wall Street will be looking for positivity from PYPL as it approaches its next earnings report date. The company is expected to report EPS of $0.94, up 54.1% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.40 billion, up 23.36% from the year-ago period.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $3.74 per share and revenue of $21.36 billion. These results would represent year-over-year changes of +20.65% and +20.21%, respectively.
Investors should also note any recent changes to analyst estimates for PYPL. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, the Zacks Consensus EPS estimate remained stagnant. PYPL is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that PYPL has a Forward P/E ratio of 55.54 right now. This valuation marks a discount compared to its industry's average Forward P/E of 91.77.
Investors should also note that PYPL has a PEG ratio of 2.62 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PYPL's industry had an average PEG ratio of 6.58 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.