EBay Inc (EBAY): Services' Featured Underperformer Of The Day

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 Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day down 1.4%. By the end of trading, eBay fell 66 cents (-1.2%) to $55.50 on average volume. Throughout the day, 11.4 million shares of eBay exchanged hands as compared to its average daily volume of 11.2 million shares. The stock ranged in price between $55.32-$56 after having opened the day at $55.81 as compared to the previous trading day's close of $56.16. Other companies within the Services sector that declined today were: Newlead Holdings ( NEWL), down 10.8%, China Auto Logistics ( CALI), down 10.5%, Paragon Shipping ( PRGN), down 9.8%, and Global Payments ( GPN), down 9.2%.
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eBay Inc. provides online platforms, tools, and services to help individuals and merchants in online and mobile commerce and payments in the United States and internationally. eBay has a market cap of $72.15 billion and is part of the retail industry. The company has a P/E ratio of 28, above the S&P 500 P/E ratio of 17.7. Shares are up 10.1% year to date as of the close of trading on Tuesday. Currently there are 23 analysts that rate eBay a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates eBay as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Good Times Restaurants ( GTIM), up 10%, Conn's ( CONN), up 8.1%, Acorn International ( ATV), up 7%, and General Employment ( JOB), up 6.5%, were all gainers within the services sector with Chico's FAS ( CHS) being today's featured services sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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