EBay (EBAY) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, eBay (EBAY) closed at $54.20, marking a -0.22% move from the previous day. This change lagged the S&P 500's daily gain of 0.47%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq gained 0.33%.
Prior to today's trading, shares of the e-commerce company had gained 8.34% over the past month. This has outpaced the Retail-Wholesale sector's gain of 7.48% and the S&P 500's gain of 3.42% in that time.
EBAY will be looking to display strength as it nears its next earnings release, which is expected to be October 28, 2020. The company is expected to report EPS of $0.86, up 28.36% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.68 billion, up 1.24% from the year-ago period.
EBAY's full-year Zacks Consensus Estimates are calling for earnings of $3.58 per share and revenue of $10.61 billion. These results would represent year-over-year changes of +26.5% and -1.77%, respectively.
Any recent changes to analyst estimates for EBAY should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. EBAY is currently a Zacks Rank #3 (Hold).
Investors should also note EBAY's current valuation metrics, including its Forward P/E ratio of 15.17. Its industry sports an average Forward P/E of 44.22, so we one might conclude that EBAY is trading at a discount comparatively.
Meanwhile, EBAY's PEG ratio is currently 1.2. 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. The Internet - Commerce industry currently had an average PEG ratio of 3.36 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 106, putting it in the top 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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