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Paypal (PYPL) Rises But Trails Market: What Investors Should Know
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In the latest market close, Paypal (PYPL - Free Report) reached $89.85, with a +0.09% movement compared to the previous day. The stock lagged the S&P 500's daily gain of 0.61%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.28%.
Shares of the technology platform and digital payments company witnessed a gain of 1.72% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.24% and underperforming the S&P 500's gain of 2.08%.
The upcoming earnings release of Paypal will be of great interest to investors. The company's earnings report is expected on February 4, 2025. The company's earnings per share (EPS) are projected to be $1.11, reflecting a 25% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $8.23 billion, indicating a 2.52% upward movement from the same quarter last year.
Investors should also note any recent changes to analyst estimates for Paypal. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% downward. Right now, Paypal possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Paypal currently has a Forward P/E ratio of 18.31. This represents a discount compared to its industry's average Forward P/E of 29.01.
Also, we should mention that PYPL has a PEG ratio of 1.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.19 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 41, positioning it in the top 17% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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 (PYPL) Rises But Trails Market: What Investors Should Know
In the latest market close, Paypal (PYPL - Free Report) reached $89.85, with a +0.09% movement compared to the previous day. The stock lagged the S&P 500's daily gain of 0.61%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.28%.
Shares of the technology platform and digital payments company witnessed a gain of 1.72% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.24% and underperforming the S&P 500's gain of 2.08%.
The upcoming earnings release of Paypal will be of great interest to investors. The company's earnings report is expected on February 4, 2025. The company's earnings per share (EPS) are projected to be $1.11, reflecting a 25% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $8.23 billion, indicating a 2.52% upward movement from the same quarter last year.
Investors should also note any recent changes to analyst estimates for Paypal. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% downward. Right now, Paypal possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Paypal currently has a Forward P/E ratio of 18.31. This represents a discount compared to its industry's average Forward P/E of 29.01.
Also, we should mention that PYPL has a PEG ratio of 1.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.19 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 41, positioning it in the top 17% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.