Paypal (PYPL) Ascends But Remains Behind Market: Some Facts to Note

The latest trading session saw Paypal (PYPL) ending at $70.97, denoting a +1.11% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 1.77%. Elsewhere, the Dow saw an upswing of 1.42%, while the tech-heavy Nasdaq appreciated by 2.28%.The technology platform and digital payments company's stock has dropped by 6.35% in the past month, exceeding the Business Services sector's loss of 7.87% and lagging the S&P 500's loss of 5.73%.Investors will be eagerly watching for the performance of Paypal in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.16, signifying a 17.14% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $7.82 billion, showing a 1.57% escalation compared to the year-ago quarter.For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.02 per share and a revenue of $32.98 billion, representing changes of +7.96% and +3.72%, respectively, from the prior year.Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Paypal. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.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. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. Paypal presently features a Zacks Rank of #3 (Hold).Digging into valuation, Paypal currently has a Forward P/E ratio of 13.98. This valuation marks a discount compared to its industry's average Forward P/E of 15.25.It's also important to note that PYPL currently trades at a PEG ratio of 1.19. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Financial Transaction Services industry had an average PEG ratio of 1.41.The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 133, putting it in the bottom 48% of all 250+ industries.The Zacks Industry Rank gauges the strength of our 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.Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PayPal Holdings, Inc. (PYPL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks