EBay Inc (EBAY): Retail's 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 Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day down 3.3%. By the end of trading, eBay fell $1.47 (-2.6%) to $55.84 on average volume. Throughout the day, nine million shares of eBay exchanged hands as compared to its average daily volume of 11 million shares. The stock ranged in price between $55.68-$57.48 after having opened the day at $56.98 as compared to the previous trading day's close of $57.31. Other companies within the Retail industry that declined today were: China Jo-Jo Drugstores ( CJJD), down 13.7%, QKL Stores ( QKLS), down 10.5%, Ingles Markets ( IMKTA), down 9.3%, and Overstock.com ( OSTK), down 8.9%.
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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 $74.84 billion and is part of the services sector. The company has a P/E ratio of 29, above the S&P 500 P/E ratio of 17.7. Shares are up 13.3% year to date as of the close of trading on Friday. Currently there are 24 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.

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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