Back to top

Image: Bigstock

EBay (EBAY) Stock Moves -0.17%: What You Should Know

Read MoreHide Full Article

In the latest trading session, eBay (EBAY - Free Report) closed at $58.90, marking a -0.17% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.48%. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 3.02%.

Prior to today's trading, shares of the e-commerce company had lost 6.42% over the past month. This has lagged the Retail-Wholesale sector's loss of 4.93% and the S&P 500's gain of 1.23% in that time.

Wall Street will be looking for positivity from EBAY as it approaches its next earnings report date. The company is expected to report EPS of $1.04, up 35.06% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.97 billion, up 24.91% from the year-ago period.

EBAY's full-year Zacks Consensus Estimates are calling for earnings of $3.98 per share and revenue of $11.97 billion. These results would represent year-over-year changes of +16.72% and +11.72%, respectively.

Investors might also notice recent changes to analyst estimates for EBAY. These revisions help to show the ever-changing nature of 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. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. EBAY is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that EBAY has a Forward P/E ratio of 14.83 right now. Its industry sports an average Forward P/E of 62.39, so we one might conclude that EBAY is trading at a discount comparatively.

Investors should also note that EBAY has a PEG ratio of 0.97 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 2.36 based on yesterday's closing prices.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 230, which puts it in the bottom 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


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


eBay Inc. (EBAY) - free report >>

Published in