Yahoo Finance Paypal (PYPL) Stock Sinks As Market Gains: Here's Why
Paypal (PYPL) ended the recent trading session at $58.26, demonstrating a -1.8% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.16%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, added 0.49%.
Coming into today, shares of the technology platform and digital payments company had lost 4.57% in the past month. In that same time, the Computer and Technology sector gained 5.94%, while the S&P 500 gained 3.22%.
Investors will be eagerly watching for the performance of Paypal in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.95, showcasing a 18.1% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $7.78 billion, indicating a 6.7% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.14 per share and revenue of $31.94 billion. These totals would mark changes of -18.82% and +7.28%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Paypal. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Paypal is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Paypal has a Forward P/E ratio of 14.34 right now. Its industry sports an average Forward P/E of 29.56, so one might conclude that Paypal is trading at a discount comparatively.
Investors should also note that PYPL has a PEG ratio of 0.97 right now. 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 Internet - Software industry currently had an average PEG ratio of 1.62 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 74, positioning it in the top 30% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
