Yahoo Finance Paypal (PYPL) Gains As Market Dips: What You Should Know
Paypal (PYPL) closed at $183.23 in the latest trading session, marking a +0.91% move from the prior day. This change outpaced the S&P 500's 0.56% loss on the day. At the same time, the Dow lost 1.39%, and the tech-heavy Nasdaq gained 0.53%.
Prior to today's trading, shares of the technology platform and digital payments company had gained 13.55% over the past month. This has outpaced the Computer and Technology sector's gain of 5.97% and the S&P 500's loss of 1.79% in that time.
Investors will be hoping for strength from PYPL as it approaches its next earnings release, which is expected to be July 29, 2020. In that report, analysts expect PYPL to post earnings of $0.84 per share. This would mark a year-over-year decline of 2.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.95 billion, up 14.95% from the year-ago period.
PYPL's full-year Zacks Consensus Estimates are calling for earnings of $3.33 per share and revenue of $20.09 billion. These results would represent year-over-year changes of +7.42% and +13.07%, respectively.
Investors might also notice recent changes to analyst estimates for PYPL. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.81% higher 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 54.56. This valuation marks a discount compared to its industry's average Forward P/E of 71.19.
Also, we should mention that PYPL has a PEG ratio of 3.66. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 4.01 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 48, which puts it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
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