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EBay (EBAY) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, eBay (EBAY - Free Report) closed at $53.93, marking a -1.01% move from the previous day. This change lagged the S&P 500's 0.66% loss on the day. At the same time, the Dow lost 0.29%, and the tech-heavy Nasdaq lost 1.25%.

Heading into today, shares of the e-commerce company had gained 9.84% over the past month, outpacing the Retail-Wholesale sector's loss of 0.4% and the S&P 500's gain of 3.42% in that time.

Investors will be hoping for strength from EBAY as it approaches its next earnings release. The company is expected to report EPS of $0.84, up 3.7% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.72 billion, down 3.63% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for EBAY. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.3% higher. EBAY is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, EBAY currently has a Forward P/E ratio of 14.92. This valuation marks a discount compared to its industry's average Forward P/E of 46.64.

Meanwhile, EBAY's PEG ratio is currently 1.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. 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 216, putting it in the bottom 16% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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