EBay (EBAY) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, eBay (EBAY) closed at $28.34, marking a +0.64% move from the previous day. This move outpaced the S&P 500’s daily gain of 0.3%. At the same time, the Dow 0%, and the tech-heavy Nasdaq gained 0.92%.
Prior to today’s trading, shares of the e-commerce company had gained 3.85% over the past month. This has outpaced the Retail-Wholesale sector’s loss of 3.96% and the S&P 500’s loss of 4.06% in that time.
Wall Street will be looking for positivity from EBAY as it approaches its next earnings report date. This 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.
Investors might also notice recent changes to analyst estimates for EBAY. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.38% higher. EBAY is currently a Zacks Rank #3 (Hold).
In terms of valuation, EBAY is currently trading at a Forward P/E ratio of 12.31. Its industry sports an average Forward P/E of 26, so we one might conclude that EBAY is trading at a discount comparatively.
Meanwhile, EBAY’s PEG ratio is currently 1.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Internet – Commerce industry currently had an average PEG ratio of 2.02 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 148, which puts it in the bottom 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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