In the latest trading session, Paypal (PYPL) closed at $74.13, marking a +0.3% move from the previous day. This change outpaced the S&P 500's 0.84% loss on the day. Elsewhere, the Dow lost 0.69%, while the tech-heavy Nasdaq lost 0.05%.
Heading into today, shares of the technology platform and digital payments company had gained 1.39% over the past month, lagging the Computer and Technology sector's gain of 1.72% and the S&P 500's gain of 2.02% in that time.
Wall Street will be looking for positivity from Paypal as it approaches its next earnings report date. This is expected to be August 2, 2022. In that report, analysts expect Paypal to post earnings of $0.86 per share. This would mark a year-over-year decline of 25.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.81 billion, up 9.12% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.85 per share and revenue of $28.24 billion. These totals would mark changes of -16.3% and +11.29%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Paypal. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.56% lower within the past month. Paypal is currently a Zacks Rank #4 (Sell).
Digging into valuation, Paypal currently has a Forward P/E ratio of 19.18. For comparison, its industry has an average Forward P/E of 42.85, which means Paypal is trading at a discount to the group.
Meanwhile, PYPL's PEG ratio is currently 1.1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. PYPL's industry had an average PEG ratio of 2.38 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 139, which puts it in the bottom 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.$PayPal(PYPL)$
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