Paypal (PYPL) Increases Despite Market Slip: Here's What You Need to Know

Paypal (PYPL) ended the recent trading session at $53.29, demonstrating a +2.15% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.59%. On the other hand, the Dow registered a loss of 0.6%, and the technology-centric Nasdaq decreased by 0.65%.

Prior to today's trading, shares of the technology platform and digital payments company had lost 11.88% lagged the Business Services sector's loss of 3.5% and the S&P 500's loss of 1.37%.

Investors will be eagerly watching for the performance of Paypal in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.32, showcasing a 1.49% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $8.7 billion, showing a 3.38% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $5.38 per share and a revenue of $34.66 billion, demonstrating changes of +1.32% and +4.48%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Paypal. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.2% increase. Paypal is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Paypal is holding a Forward P/E ratio of 9.69. This represents a discount compared to its industry average Forward P/E of 13.34.

Also, we should mention that PYPL has a PEG ratio of 1.11. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 0.83.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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

This article originally published on Zacks Investment Research (zacks.com).

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