In the latest trading session, Paypal (PYPL) closed at $175.58, marking a -1.81% move from the previous day. This change lagged the S&P 500’s 0.17% gain on the day. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq lost 0.81%.
Prior to today’s trading, shares of the technology platform and digital payments company had gained 5.03% over the past month. This has lagged the Computer and Technology sector’s gain of 7.91% and the S&P 500’s gain of 5.15% in that time.
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. On that day, PYPL is projected to report earnings of $0.84 per share, which would represent a year-over-year decline of 2.33%. Our most recent consensus estimate is calling for quarterly revenue of $4.95 billion, up 14.95% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.32 per share and revenue of $20.09 billion, which would represent changes of +7.1% and +13.07%, respectively, from the prior year.
Any recent changes to analyst estimates for PYPL should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.31% lower within the past month. PYPL is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, PYPL is holding a Forward P/E ratio of 53.81. This represents a discount compared to its industry’s average Forward P/E of 78.11.
Also, we should mention that PYPL has a PEG ratio of 3.61. 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. The Internet – Software was holding an average PEG ratio of 4.19 at yesterday’s closing price.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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