Paypal (PYPL) Suffers a Larger Drop Than the General Market: Key Insights

In the latest close session, Paypal (PYPL) was down 1.51% at $41.70. This move lagged the S&P 500's daily loss of 1.44%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 2.22%. The technology platform and digital payments company's stock has dropped by 4.27% in the past month, falling short of the Business Services sector's loss of 2.49% and the S&P 500's gain of 0.08%.The investment community will be paying close attention to the earnings performance of Paypal in its upcoming release. The company is forecasted to report an EPS of $1.28, showcasing a 8.57% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $8.5 billion, indicating a 2.58% growth compared to the corresponding quarter of the prior year. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.3 per share and a revenue of $34.26 billion, indicating changes of -0.19% and +3.29%, respectively, from the former year. Any recent changes to analyst estimates for Paypal should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Paypal boasts a Zacks Rank of #3 (Hold). Looking at its valuation, Paypal is holding a Forward P/E ratio of 7.99. This indicates a discount in contrast to its industry's Forward P/E of 10.41. We can also see that PYPL currently has a PEG ratio of 1.06. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. PYPL's industry had an average PEG ratio of 0.74 as of yesterday's close. The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 28% of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks