Paypal (PYPL) Registers a Bigger Fall Than the Market: Important Facts to Note
The latest trading session saw Paypal (PYPL) ending at $79.55, denoting a -1.39% adjustment from its last day's close. This change lagged the S&P 500's 0.76% loss on the day. Elsewhere, the Dow saw a downswing of 0.75%, while the tech-heavy Nasdaq depreciated by 1.01%.
Prior to today's trading, shares of the technology platform and digital payments company had gained 13.51% over the past month. This has outpaced the Computer and Technology sector's gain of 5.51% and the S&P 500's gain of 4.31% in that time.
The upcoming earnings release of Paypal will be of great interest to investors. The company is predicted to post an EPS of $1.06, indicating a 18.46% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $7.85 billion, up 5.8% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $4.42 per share and a revenue of $31.94 billion, demonstrating changes of -13.33% and +7.29%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Paypal. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Paypal is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Paypal currently has a Forward P/E ratio of 18.26. This signifies a discount in comparison to the average Forward P/E of 31.73 for its industry.
It's also important to note that PYPL currently trades at a PEG ratio of 1.47. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.02.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 78, finds itself in the top 31% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report