We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TRIP vs. EBAY: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors looking for stocks in the Internet - Commerce sector might want to consider either TripAdvisor (TRIP - Free Report) or eBay (EBAY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
TripAdvisor and eBay are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that TRIP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
TRIP currently has a forward P/E ratio of 7.21, while EBAY has a forward P/E of 14.65. We also note that TRIP has a PEG ratio of 0.62. 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. EBAY currently has a PEG ratio of 1.63.
Another notable valuation metric for TRIP is its P/B ratio of 2.11. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, EBAY has a P/B of 8.29.
These are just a few of the metrics contributing to TRIP's Value grade of A and EBAY's Value grade of C.
TRIP has seen stronger estimate revision activity and sports more attractive valuation metrics than EBAY, so it seems like value investors will conclude that TRIP is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
View the Zacks #1 Rank List
Image: Bigstock
TRIP vs. EBAY: Which Stock Is the Better Value Option?
Investors looking for stocks in the Internet - Commerce sector might want to consider either TripAdvisor (TRIP - Free Report) or eBay (EBAY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
TripAdvisor and eBay are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that TRIP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
TRIP currently has a forward P/E ratio of 7.21, while EBAY has a forward P/E of 14.65. We also note that TRIP has a PEG ratio of 0.62. 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. EBAY currently has a PEG ratio of 1.63.
Another notable valuation metric for TRIP is its P/B ratio of 2.11. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, EBAY has a P/B of 8.29.
These are just a few of the metrics contributing to TRIP's Value grade of A and EBAY's Value grade of C.
TRIP has seen stronger estimate revision activity and sports more attractive valuation metrics than EBAY, so it seems like value investors will conclude that TRIP is the superior option right now.