Paypal (PYPL) ended the recent trading session at $67.99, demonstrating a -0.25% swing from the preceding day's closing price. This change was narrower than the S&P 500's daily loss of 0.76%. On the other hand, the Dow registered a loss of 1.14%, and the technology-centric Nasdaq decreased by 0.18%.

Shares of the technology platform and digital payments company witnessed a loss of 12.88% over the previous month, trailing the performance of the Business Services sector with its loss of 9.99% and the S&P 500's loss of 7.29%.

The investment community will be paying close attention to the earnings performance of Paypal in its upcoming release. The company's earnings per share (EPS) are projected to be $1.16, reflecting a 17.14% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $7.82 billion, reflecting a 1.57% rise from the equivalent quarter last year.

PYPL's full-year Zacks Consensus Estimates are calling for earnings of $5.02 per share and revenue of $32.98 billion. These results would represent year-over-year changes of +7.96% and +3.72%, respectively.

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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 0.04% upward. Paypal currently has a Zacks Rank of #2 (Buy).

From a valuation perspective, Paypal is currently exchanging hands at a Forward P/E ratio of 13.58. This denotes a discount relative to the industry's average Forward P/E of 14.91.

Meanwhile, PYPL's PEG ratio is currently 1.16. 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. As of the close of trade yesterday, the Financial Transaction Services industry held an average PEG ratio of 1.42.

The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 131, placing it within the bottom 48% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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

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

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