Paypal (PYPL) shares rallied 6% in the last trading session to close at $65.82. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.1% gain over the past four weeks.
PayPal extended its rally, driven its portfolio strength. Growing customer engagement on the company’s platform is leading to increase in net new active accounts. Additionally, solid momentum of core peer to peer, buy now pay later services and PayPal Checkout experiences is a tailwind.
This technology platform and digital payments company is expected to post quarterly earnings of $1.36 per share in its upcoming report, which represents a year-over-year change of 9.7%. Revenues are expected to be $7.88 billion, up 6.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Paypal, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on PYPL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Paypal belongs to the Zacks Internet - Software industry. Another stock from the same industry, Clearwater Analytics (CWAN), closed the last trading session 3.8% lower at $18.65. Over the past month, CWAN has returned -2%.
Clearwater Analytics' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.08. Compared to the company's year-ago EPS, this represents a change of 14.3%. Clearwater Analytics currently boasts a Zacks Rank of #4 (Sell).
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