Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, eBay (EBAY - Free Report) closed at $52.03, marking a +1.03% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.71%. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 0.95%.

Coming into today, shares of the e-commerce company had gained 2.94% in the past month. In that same time, the Retail-Wholesale sector lost 3.15%, while the S&P 500 gained 0.17%.

Wall Street will be looking for positivity from EBAY as it approaches its next earnings report date. In that report, analysts expect EBAY to post earnings of $0.84 per share. This would mark year-over-year growth of 3.7%. Meanwhile, our latest consensus estimate is calling for revenue of $2.71 billion, down 3.79% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for EBAY. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. EBAY is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, EBAY is currently trading at a Forward P/E ratio of 14.11. This valuation marks a discount compared to its industry's average Forward P/E of 43.01.

It is also worth noting that EBAY currently has a PEG ratio of 1.06. 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. The Internet - Commerce industry currently had an average PEG ratio of 2.43 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


eBay Inc. (EBAY) - free report >>

Published in