Pre-Market Laggard: EBay (EBAY)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified eBay as such a stock due to the following factors:
- EBAY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $596.8 million.
- EBAY traded 29,191 shares today in the pre-market hours as of 7:39 AM.
- EBAY is down 2.9% today from yesterday's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in EBAY with the Ticky from Trade-Ideas. See the FREE profile for EBAY NOW at Trade-Ideas
More details on EBAY:
eBay Inc. operates as a technology company that enables commerce and payments on behalf of users, merchants, retailers, and brands of various sizes in the United States and internationally. It operates in three segments: Marketplaces, Payments, and Enterprise. EBAY has a PE ratio of 1489.2. Currently there are 14 analysts that rate eBay a buy, 1 analyst rates it a sell, and 13 rate it a hold.
The average volume for eBay has been 8.4 million shares per day over the past 30 days. eBay has a market cap of $72.1 billion and is part of the services sector and specialty retail industry. The stock has a beta of 0.79 and a short float of 2% with 2.20 days to cover. Shares are up 6% year-to-date as of the close of trading on Tuesday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Analysis:
rates eBay as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- EBAY's revenue growth trails the industry average of 18.6%. Since the same quarter one year prior, revenues slightly increased by 8.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- EBAY INC has improved earnings per share by 26.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EBAY INC reported lower earnings of $0.07 versus $2.18 in the prior year. This year, the market expects an improvement in earnings ($3.11 versus $0.07).
- The gross profit margin for EBAY INC is currently very high, coming in at 73.83%. Regardless of EBAY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 20.78% trails the industry average.
- Despite currently having a low debt-to-equity ratio of 0.38, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.43 is sturdy.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Internet Software & Services industry average, but is greater than that of the S&P 500. The net income increased by 20.4% when compared to the same quarter one year prior, going from $850.00 million to $1,023.00 million.
- You can view the full eBay Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
null