Yahoo Finance EBay (EBAY) Outpaces Stock Market Gains: What You Should Know
eBay (EBAY) closed at $45.98 in the latest trading session, marking a +1.73% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.82%. Elsewhere, the Dow gained 1.05%, while the tech-heavy Nasdaq added 0.59%.
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, our latest consensus estimate is calling for revenue of $2.48 billion, down 7.86% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.10 per share and revenue of $9.71 billion. These totals would mark changes of +9.54% and -10.11%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for EBAY. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. EBAY is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that EBAY has a Forward P/E ratio of 14.56 right now. For comparison, its industry has an average Forward P/E of 44.23, which means EBAY is trading at a discount to the group.
It is also worth noting that EBAY currently has a PEG ratio of 1.17. 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 1.63 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 30, which puts it in the top 12% 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.
