Paypal (PYPL) Stock Sinks As Market Gains: What You Should Know
Paypal (PYPL) closed at $172.06 in the latest trading session, marking a -0.14% move from the prior day. This move lagged the S&P 500's daily gain of 0.91%. At the same time, the Dow added 0.85%, and the tech-heavy Nasdaq gained 0.59%.
Coming into today, shares of the technology platform and digital payments company had gained 6.87% in the past month. In that same time, the Computer and Technology sector gained 8.52%, while the S&P 500 gained 5.26%.
Wall Street will be looking for positivity from PYPL as it approaches its next earnings report date. This is expected to be July 29, 2020. The company is expected to report EPS of $0.84, down 2.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.95 billion, up 14.95% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.33 per share and revenue of $20.09 billion, which would represent changes of +7.42% and +13.07%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for PYPL. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.81% higher within the past month. PYPL is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, PYPL currently has a Forward P/E ratio of 51.77. This represents a discount compared to its industry's average Forward P/E of 65.81.
Meanwhile, PYPL's PEG ratio is currently 3.48. 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. Internet - Software stocks are, on average, holding a PEG ratio of 3.75 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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