How Paypal (PYPL), Gains As The Market Sinks
The latest trading session saw Paypal (PYPL close at $80.18, a +0.88% increase from the previous day. This move outpaced the S&P 500’s daily loss of 0.2%. The Dow lost 1.14% and the Nasdaq (a tech-heavy index) gained 1.39%.
Heading into today, shares of the technology platform and digital payments company had gained 15.27% over the past month, outpacing the Computer and Technology sector’s gain of 3.75% and the S&P 500’s gain of 4.01% in that time.
As it approaches its next earnings release on February 9, 2023, Paypal will be trying to show strength. The company is expected report an EPS estimate of $1.19. That’s an increase of 7.21% from the previous quarter. Our latest consensus estimate predicts quarterly revenue of $7.39Billion, an increase of 6.85% over the previous year.
Notable are also recent revisions to analyst estimates for Paypal. Revisions in recent months tend to reflect current business trends. Positive revisions can be interpreted as positive signs for the company’s future business prospects.
Our research shows that these revisions to estimates are directly linked to stock moves by near-team stocks. This is a great opportunity for investors to capitalize by using the Zacks Rank. This model uses these estimate changes to provide a simple and actionable rating system.
The Zacks Rank system is ranked from #1 (Strong Buy), to #5 (Strong Sell). The system boasts an extraordinary track record of success. #1 stocks have a +25% average annual return since 1988. The Zacks Consensus EPS estimate has remained flat over the past month. Paypal currently has a Zacks Rank 2 (Buy).
Paypal’s Forward P/E ratio is 16.6 when you look at its valuation. This is a significant discount when compared to the industry’s average Forward PE ratio of 41.43.
Investors should also be aware that PYPL’s current PEG ratio is 1.05. This popular metric is very similar to the well-known P/E ratio. However, the PEG ratio also considers the company’s expected earnings growth rate. Yesterday’s close showed that the Internet – Software industry had a PEG ratio of 2.13.
The Computer and Technology sector includes the Internet – Software industry. The Zacks Industry Rank 51 currently ranks this industry in the top 21% out of 250+ industries.
The Zacks Industry Rank measures the strength of individual industry groups by measuring their average Zacks Rank. Our research has shown that the top half of industries are rated higher than the bottom 50% by a factor 2 to 1.
Zacks.com is the best place to follow PYPL’s trading sessions.
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PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report