EBay Inc (EBAY): Today's Featured Retail Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

eBay ( EBAY) pushed the Retail industry higher today making it today's featured retail winner. The industry as a whole closed the day up 0.8%. By the end of trading, eBay rose 90 cents (1.9%) to $49.49 on average volume. Throughout the day, 10.7 million shares of eBay exchanged hands as compared to its average daily volume of 11 million shares. The stock ranged in a price between $49.31-$50.24 after having opened the day at $49.70 as compared to the previous trading day's close of $48.59. Other companies within the Retail industry that increased today were: Alon Holdings Blue Square - Israel ( BSI), up 17.3%, E-Commerce China Dangdang ( DANG), up 6.6%, Gordman's Stores ( GMAN), up 5.7%, and GameStop ( GME), up 5%.
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eBay Inc. provides online platforms, services, and tools to help individuals and merchants in online and mobile commerce and payments in the United States and internationally. eBay has a market cap of $62.37 billion and is part of the services sector. The company has a P/E ratio of 17, equal to the average retail industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 59.6% year to date as of the close of trading on Wednesday. Currently there are 21 analysts that rate eBay a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates eBay as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front, Bidz.com ( BIDZ), down 11.1%, Bon-Ton Stores ( BONT), down 7.6%, Pacific Sunwear ( PSUN), down 5.3%, and bebe stores ( BEBE), down 4.4%, were all laggards within the retail industry with Ross Stores ( ROST) being today's retail industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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