Here's Why Paypal (PYPL) Fell More Than Broader Market

Company Performance - Paypal (PYPL) closed at $72.96, reflecting a -1.26% change from the previous day, underperforming the S&P 500's daily loss of 0.4% [1] - Over the past month, Paypal shares gained 2.26%, outperforming the Business Services sector's gain of 0.01% but lagging behind the S&P 500's gain of 4.97% [1] Upcoming Earnings - Paypal's earnings report is scheduled for July 29, 2025, with expected earnings of $1.29 per share, indicating a year-over-year growth of 8.4% [2] - The consensus estimate projects revenue of $8.09 billion, reflecting a 2.55% increase from the same quarter last year [2] Annual Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of $5.09 per share and revenue of $32.73 billion, representing year-over-year changes of +9.46% and +2.92%, respectively [3] Analyst Forecast Revisions - Recent revisions to analyst forecasts for Paypal are important as they reflect short-term business trends and analysts' confidence in performance and profit potential [4] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown a strong track record, with 1 stocks averaging an annual return of +25% since 1988 [6] - Paypal currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate moving 0.04% higher over the last 30 days [6] Valuation Metrics - Paypal's Forward P/E ratio is 14.53, which is lower than the industry average Forward P/E of 16.33 [7] - The company has a PEG ratio of 1.21, compared to the Financial Transaction Services industry's average PEG ratio of 1.3 [7] Industry Overview - The Financial Transaction Services industry is part of the Business Services sector, holding a Zacks Industry Rank of 93, placing it in the top 38% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]