Paypal (PYPL) closed the latest trading day at $87.94, indicating a -0.03% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.16%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.06%.

Shares of the technology platform and digital payments company have depreciated by 0.89% over the course of the past month, underperforming the Computer and Technology sector's loss of 0.17% and outperforming the S&P 500's loss of 2.8%.

Investors will be eagerly watching for the performance of Paypal in its upcoming earnings disclosure. The company is expected to report EPS of $1.11, down 25% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $8.23 billion, indicating a 2.56% increase compared to the same quarter of the previous year.

It is also important to note the recent changes to analyst estimates for Paypal. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.24% increase. Right now, Paypal possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, Paypal is holding a Forward P/E ratio of 17.94. This expresses a discount compared to the average Forward P/E of 29.33 of its industry.

Meanwhile, PYPL's PEG ratio is currently 1.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Software stocks are, on average, holding a PEG ratio of 2.12 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 33, placing it within the top 14% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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.