Paypal (PYPL) Outpaces Stock Market Gains: What You Should Know
Paypal (PYPL) closed the most recent trading day at $293.21, moving +1.77% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.58%.
Heading into today, shares of the technology platform and digital payments company had gained 10.23% over the past month, outpacing the Computer and Technology sector's gain of 7.24% and the S&P 500's gain of 2.17% in that time.
Investors will be hoping for strength from PYPL as it approaches its next earnings release, which is expected to be July 28, 2021. On that day, PYPL is projected to report earnings of $1.13 per share, which would represent year-over-year growth of 5.61%. Our most recent consensus estimate is calling for quarterly revenue of $6.3 billion, up 19.72% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.74 per share and revenue of $25.78 billion. These totals would mark changes of +22.16% and +20.14%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for PYPL. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PYPL is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note PYPL's current valuation metrics, including its Forward P/E ratio of 60.85. This represents a discount compared to its industry's average Forward P/E of 76.84.
We can also see that PYPL currently has a PEG ratio of 2.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 3.48 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
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