PayPal Stock Falls Despite Upcoming Earnings Growth as Valuation Concerns Weigh

Paypal (PYPL) stock fell 1.86% compared to 0.13% drop in S&P 500 in latest market close. Stock is down 6.74% over last month.

Paypal expected to report Q4 EPS of $1.22, up 12.96% YoY. Revenue forecast at $7.4B, up 8.04%.

For full year, consensus estimates call for EPS of $4.95, revenue of $29.7B, up 19.85% and 7.92% respectively.

PYPL has PEG ratio of 0.68 vs industry average of 1.47, indicating it's relatively undervalued.

Zacks Rank system rates PYPL a #3 (Hold). Investors should watch upcoming earnings report and valuation metrics.