Core Viewpoint - Paypal's stock has recently underperformed, returning -13.5% over the past month compared to the S&P 500's +2.2% and the Zacks Internet - Software industry's -3.1% [2] Earnings Estimate Revisions - The consensus earnings estimate for the current quarter is $1.16 per share, reflecting a year-over-year decline of -17.1%, with a recent upward revision of +4.4% [5] - For the current fiscal year, the consensus estimate is $5.02, indicating a year-over-year increase of +8%, with a +2.5% change over the last 30 days [5] - The next fiscal year's consensus estimate is $5.63, showing a +12.1% change from the previous year, with a +4.2% revision in the past month [6] - The Zacks Rank for Paypal is 2 (Buy), indicating a positive outlook based on earnings estimate revisions [7] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $7.83 billion, representing a year-over-year increase of +1.7% [9] - For the current fiscal year, the revenue estimate is $33.01 billion, indicating a +3.8% change, while the next fiscal year's estimate is $35.17 billion, reflecting a +6.6% change [9] Last Reported Results and Surprise History - In the last reported quarter, Paypal generated revenues of $8.37 billion, a year-over-year increase of +4.2%, with an EPS of $1.19 compared to $1.48 a year ago [10] - The reported revenues exceeded the Zacks Consensus Estimate of $8.23 billion by +1.67%, and the EPS surprise was +5.31% [11] - The company has consistently beaten consensus EPS estimates in the last four quarters and topped revenue estimates three times during this period [11] Valuation - Paypal has a Zacks Value Style Score of B, indicating it is trading at a discount compared to its peers [15]
Is Most-Watched Stock PayPal Holdings, Inc. (PYPL) Worth Betting on Now?