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At the latest market close, PayPal (PYPL) hit $63.01, representing a -1.9% move from the prior day. The stock’s performance lagged the S&P 500’s daily gain of 0.57%. Elsewhere, the Dow Jones Industrial Average rose 0.83%, while the tech-heavy Nasdaq rose 0.39%.
Shares of the technology platform and digital payments company rose 8.61% over the past month, outpacing the Computer Technology sector’s 3.42% rise and the S&P 500’s 2.97% rise.
Paypal’s upcoming earnings release will be of great interest to investors. The company’s EPS is expected to be $1.16, representing a year-over-year decrease of 0.85%. Our latest consensus estimate is calling for quarterly revenue of $7.51 billion, up 6.7% from the year-ago period.
For the full fiscal year, our Zacks Consensus Estimates are projecting earnings of $4.98 per share and revenue of $31.93 billion, which would represent changes of -2.35% and +7.27% from the prior year. .
Investors should also note any recent adjustments to analyst estimates for Paypal. Such recent changes usually indicate a change in the status of short-term business trends. As a result, the positive estimate changes indicate that analysts have a favorable outlook on the health and profitability of the company’s business.
Based on our research, we believe these estimate revisions are directly related to near team stock movements. Investors can take advantage of this by using the Zacks Rank. This model takes these estimate changes into account and provides a simple and practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 ranked stocks generating an average annual return of +25% since 1988. is producing. Over the past 30 days, his Zacks Consensus EPS estimate has moved 0.73% lower. Paypal currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Paypal is currently trading at a Forward P/E of 12.91. This represents a discount when compared to its industry’s average Forward P/E of 30.15.
We should also mention that PYPL has a PEG ratio of 1.15. The PEG ratio is similar to the frequently used P/E ratio, but this parameter also includes a company’s expected earnings growth trajectory. As of yesterday’s close, the average PEG ratio for the Internet – Software industry was 1.79.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 42, putting it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by calculating the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Don’t forget to track all of these stock price movement metrics and more with Zacks.com in the coming trading sessions.
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PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
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