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EBay (EBAY) Outpaces Stock Market Gains: What You Should Know

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eBay (EBAY - Free Report) closed at $52.77 in the latest trading session, marking a +0.86% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.05%. Meanwhile, the Dow gained 0.48%, and the Nasdaq, a tech-heavy index, lost 0.61%.

Heading into today, shares of the e-commerce company had lost 7.04% over the past month, lagging the Retail-Wholesale sector's gain of 2.24% and the S&P 500's loss of 0.52% in that time.

Wall Street will be looking for positivity from EBAY as it approaches its next earnings report date. On that day, EBAY is projected to report earnings of $0.86 per share, which would represent year-over-year growth of 28.36%. Our most recent consensus estimate is calling for quarterly revenue of $2.70 billion, up 2.07% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.58 per share and revenue of $10.78 billion, which would represent changes of +26.5% and -0.22%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for EBAY. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% lower. EBAY is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, EBAY is currently trading at a Forward P/E ratio of 14.61. This represents a discount compared to its industry's average Forward P/E of 45.91.

Also, we should mention that EBAY has a PEG ratio of 1.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EBAY's industry had an average PEG ratio of 3.3 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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