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

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eBay (EBAY - Free Report) closed the most recent trading day at $56.24, moving +1.63% from the previous trading session. This change outpaced the S&P 500's 1.04% gain on the day. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 2.52%.

Coming into today, shares of the e-commerce company had lost 11.2% in the past month. In that same time, the Retail-Wholesale sector lost 6.54%, while the S&P 500 lost 0.15%.

Investors will be hoping for strength from EBAY as it approaches its next earnings release. The company is expected to report EPS of $1.04, up 35.06% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.97 billion, up 24.91% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.98 per share and revenue of $11.97 billion, which would represent changes of +16.72% and +11.72%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for EBAY. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.03% lower within the past month. EBAY is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that EBAY has a Forward P/E ratio of 13.91 right now. This valuation marks a discount compared to its industry's average Forward P/E of 53.3.

Investors should also note that EBAY has a PEG ratio of 0.91 right now. 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. EBAY's industry had an average PEG ratio of 2.3 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 215, putting it in the bottom 16% 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.

To follow EBAY in the coming trading sessions, be sure to utilize Zacks.com.


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