In the latest trading session, eBay (EBAY - Free Report) closed at $29.86, marking a -0.3% move from the previous day. This change lagged the S&P 500's daily gain of 2.12%. At the same time, the Dow added 2.13%, and the tech-heavy Nasdaq gained 2.64%.
Heading into today, shares of the e-commerce company had lost 10.01% over the past month, lagging the Retail-Wholesale sector's loss of 2.5% and the S&P 500's loss of 4.4% in that time.
Investors will be hoping for strength from EBAY as it approaches its next earnings release, which is expected to be January 30, 2019. In that report, analysts expect EBAY to post earnings of $0.68 per share. This would mark year-over-year growth of 15.25%. Our most recent consensus estimate is calling for quarterly revenue of $2.87 billion, up 9.81% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.30 per share and revenue of $10.74 billion, which would represent changes of +15% and +12.24%, respectively, from the prior year.
Any recent changes to analyst estimates for EBAY should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 has moved 0.32% higher. EBAY is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note EBAY's current valuation metrics, including its Forward P/E ratio of 13.02. For comparison, its industry has an average Forward P/E of 29.55, which means EBAY is trading at a discount to the group.
It is also worth noting that EBAY currently has a PEG ratio of 1.36. 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's industry had an average PEG ratio of 2.31 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 184, putting it in the bottom 28% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.