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

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 lower today making it today's featured Retail laggard. The industry as a whole was unchanged today. By the end of trading, eBay fell 54 cents (-1.1%) to $48.34 on light volume. Throughout the day, 7.3 million shares of eBay exchanged hands as compared to its average daily volume of 10.7 million shares. The stock ranged in price between $48.30-$49.37 after having opened the day at $49.21 as compared to the previous trading day's close of $48.88. Other companies within the Retail industry that declined today were: Bidz.com ( BIDZ), down 16.1%, HHGregg Incorporated ( HGG), down 13.8%, Best Buy ( BBY), down 10.3%, and China Jo-Jo Drugstores ( CJJD), down 6.5%.
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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 $63.86 billion and is part of the services sector. The company has a P/E ratio of 16.8, equal to the average retail industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 62.7% year to date as of the close of trading on Wednesday. Currently there are 20 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, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and reasonable valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, Overstock.com ( OSTK), up 23.4%, Liquidity Service ( LQDT), up 9.2%, ALCO Stores ( ALCS), up 6.3%, and Village Super Market ( VLGEA), up 6%, were all gainers within the retail industry with Costco Wholesale Corporation ( COST) being today's featured retail industry leader.

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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