Paypal (PYPL) closed at $73.24 in the latest trading session, marking a -1.56% move from the prior day. This change lagged the S&P 500's 0.36% gain on the day. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.1%.

Heading into today, shares of the technology platform and digital payments company had lost 16.02% over the past month, lagging the Computer and Technology sector's loss of 6.98% and the S&P 500's loss of 6.59% in that time.

Paypal will be looking to display strength as it nears its next earnings release. On that day, Paypal is projected to report earnings of $0.86 per share, which would represent a year-over-year decline of 25.22%. Meanwhile, our latest consensus estimate is calling for revenue of $6.81 billion, up 9.23% from the prior-year quarter.

PYPL's full-year Zacks Consensus Estimates are calling for earnings of $3.94 per share and revenue of $28.25 billion. These results would represent year-over-year changes of -14.35% and +11.33%, respectively.

Investors might also notice recent changes to analyst estimates for Paypal. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 moved 2.26% lower. Paypal is currently a Zacks Rank #4 (Sell).

Investors should also note Paypal's current valuation metrics, including its Forward P/E ratio of 18.88. For comparison, its industry has an average Forward P/E of 45.23, which means Paypal is trading at a discount to the group.

Investors should also note that PYPL has a PEG ratio of 1.09 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Software stocks are, on average, holding a PEG ratio of 2.52 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 155, putting it in the bottom 39% 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.

To follow PYPL in the coming trading sessions, be sure to utilize Zacks.com.

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