Yahoo Finance EBay (EBAY) Gains As Market Dips: What You Should Know
eBay (EBAY) closed the most recent trading day at $57, moving +1.48% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.08%. Elsewhere, the Dow lost 1.51%, while the tech-heavy Nasdaq lost 0.86%.
Prior to today's trading, shares of the e-commerce company had gained 15.29% over the past month. This has outpaced the Retail-Wholesale sector's gain of 7.91% and the S&P 500's loss of 0.3% in that time.
EBAY will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.05, up 54.41% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.79 billion, up 3.98% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.48 per share and revenue of $10.32 billion, which would represent changes of +22.97% and -4.47%, respectively, from the prior year.
Any recent changes to analyst estimates for EBAY should also be noted by investors. 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. 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.
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 3.27% higher within the past month. EBAY is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, EBAY is currently trading at a Forward P/E ratio of 16.13. This represents a discount compared to its industry's average Forward P/E of 50.59.
Investors should also note that EBAY has a PEG ratio of 1.38 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 3.09 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
eBay Inc. (EBAY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
