Paypal (PYPL) Declines More Than Market: Some Information for Investors

In the latest trading session, Paypal (PYPL) closed at $75.03, marking a -1.51% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.07%. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw an increase of 0.03%.

Shares of the technology platform and digital payments company have appreciated by 3.58% over the course of the past month, outperforming the Business Services sector's loss of 2.31%, and lagging the S&P 500's gain of 3.94%.

Investors will be eagerly watching for the performance of Paypal in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 29, 2025. In that report, analysts expect Paypal to post earnings of $1.29 per share. This would mark year-over-year growth of 8.4%. At the same time, our most recent consensus estimate is projecting a revenue of $8.09 billion, reflecting a 2.55% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.08 per share and a revenue of $32.73 billion, representing changes of +9.25% and +2.92%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Paypal. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. Paypal currently has a Zacks Rank of #2 (Buy).

With respect to valuation, Paypal is currently being traded at a Forward P/E ratio of 14.99. This indicates a discount in contrast to its industry's Forward P/E of 17.12.

Meanwhile, PYPL's PEG ratio is currently 1.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Financial Transaction Services industry had an average PEG ratio of 1.32 as trading concluded yesterday.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on 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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