Paypal (PYPL) closed at $43.65 in the latest trading session, marking a +2.73% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.57%. On the other hand, the Dow registered a gain of 0.64%, and the technology-centric Nasdaq decreased by 1.15%.
Prior to today's trading, shares of the technology platform and digital payments company had lost 4.27% lagged the Business Services sector's gain of 0.13% and the S&P 500's gain of 2.14%.
The investment community will be closely monitoring the performance of Paypal in its forthcoming earnings report. The company's upcoming EPS is projected at $1.28, signifying a 8.57% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $8.5 billion, up 2.58% from the prior-year quarter.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $5.3 per share and revenue of $34.26 billion. These results would represent year-over-year changes of -0.19% and +3.29%, respectively.
Any recent changes to analyst estimates for Paypal should also be noted by investors. 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 business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. Paypal is currently a Zacks Rank #3 (Hold).
Investors should also note Paypal's current valuation metrics, including its Forward P/E ratio of 8.02. This represents a discount compared to its industry average Forward P/E of 10.55.
We can additionally observe that PYPL currently boasts a PEG ratio of 1.06. 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 had an average PEG ratio of 0.77 as trading concluded yesterday.
The Financial Transaction Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 57, positioning it in the top 24% 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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PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).