eBay (EBAY - Free Report) closed the most recent trading day at $42.47, moving -0.56% from the previous trading session. This change was narrower than the S&P 500's 0.78% loss on the day. At the same time, the Dow lost 0.41%, and the tech-heavy Nasdaq lost 0.97%.
Wall Street will be looking for positivity from EBAY as it approaches its next earnings report date. In that report, analysts expect EBAY to post earnings of $0.77 per share. This would mark year-over-year growth of 13.24%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.48 billion, down 7.86% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.10 per share and revenue of $9.70 billion. These totals would mark changes of +9.54% and -10.17%, respectively, from last year.
It is also important to note the 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 4.39% higher. EBAY is currently a Zacks Rank #2 (Buy).
In terms of valuation, EBAY is currently trading at a Forward P/E ratio of 13.76. This represents a discount compared to its industry's average Forward P/E of 43.89.
We can also see that EBAY currently has a PEG ratio of 1.11. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.65 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 29, which puts it in the top 12% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.