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Paypal (PYPL) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, Paypal (PYPL) closed at $178.42, marking a -1.43% move from the previous day. This change lagged the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 0.42%.

Coming into today, shares of the technology platform and digital payments company had lost 4.1% in the past month. In that same time, the Computer and Technology sector lost 5.11%, while the S&P 500 gained 0.22%.

Wall Street will be looking for positivity from Paypal as it approaches its next earnings report date. In that report, analysts expect Paypal to post earnings of $1.12 per share. This would mark year-over-year growth of 3.7%. Our most recent consensus estimate is calling for quarterly revenue of $6.89 billion, up 12.62% from the year-ago period.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.48% lower. Paypal is holding a Zacks Rank of #4 (Sell) right now.

Valuation is also important, so investors should note that Paypal has a Forward P/E ratio of 35.12 right now. Its industry sports an average Forward P/E of 54.25, so we one might conclude that Paypal is trading at a discount comparatively.

It is also worth noting that PYPL currently has a PEG ratio of 1.78. 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. The Internet - Software was holding an average PEG ratio of 2.89 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 176, which puts it in the bottom 31% 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.

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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