Paypal (PYPL) wins as the market goes down: what you need to know

Paypal (PYPL) closed on the most recent trading day at $ 255.85, up 0.31% from the previous trading session. The stock topped the S&P 500’s 0.24% daily loss.

Prior to today’s trading, shares of the tech platform and digital payments company had lost 9.07% in the past month. This delayed the loss of 5.49% of the computer and technology sector and the loss of 2.12% of the S&P 500 during this period.

Investors are hoping for strength from PYPL as its next earnings release nears. In this report, analysts expect PYPL to post earnings of $ 1.07 per share. This would not mark any growth compared to the quarter of the previous year. Our most recent consensus estimate projects quarterly revenue of $ 6.22 billion, up 13.96% from the previous year.

For the full year, our Zacks consensus estimates project earnings of $ 4.73 per share and revenue of $ 25.77 billion, which would represent changes of + 21.91% and + 20.1%, respectively, compared to the previous year.

It’s also important to note the recent changes to analyst estimates for the PYPL. Recent revisions tend to reflect the latest short-term business trends. Thus, the positive estimate revisions reflect the optimism of analysts about the business and profitability of the company.

Research indicates that these estimate revisions are directly correlated with short-term stock price dynamics. Investors can take advantage of this by using the Zacks ranking. This model takes into account these changes in estimate and provides a simple and workable scoring system.

Ranging from # 1 (strong buy) to # 5 (strong sell), the Zacks Rank system has a proven and externally audited track record of outperformance, with # 1 stocks returning an average of + 25% per year since 1988. Over the past month, Zacks Consensus EPS estimate has remained stagnant. PYPL currently has a Zacks rank of # 3 (Hold).

In terms of valuation, PYPL is currently trading at a forward P / E ratio of 53.97. This represents a discount to its industry’s average forward P / E of 58.08.

We can also see that PYPL currently has a PEG ratio of 2.49. This metric is used similarly to the famous P / E ratio, but the PEG ratio also takes into account the expected growth rate of the stock’s earnings. Internet – Software stocks have, on average, a PEG ratio of 4.01 based on yesterday’s close prices.

The Internet – Software industry is part of the Computer and Technology sector. This group has an Industry Zacks Rank of 173, placing it in the lowest 32% of all 250+ industries.

The Zacks Industry Rank measures the strength of our industry groups by measuring the average Zacks Rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.

Make sure to use Zacks. Com to track all of these stock market metrics, and more, over future trading sessions.

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PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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