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 closed the day up 0.3%. By the end of trading, eBay fell $0.76 (-1.4%) to $51.63 on average volume. Throughout the day, 13,605,405 shares of eBay exchanged hands as compared to its average daily volume of 10,799,300 shares. The stock ranged in price between $51.16-$52.32 after having opened the day at $52.14 as compared to the previous trading day's close of $52.39. Other companies within the Retail industry that declined today were: dELiA*s ( DLIA), down 10.1%, QKL Stores ( QKLS), down 6.0%, China Jo-Jo Drugstores ( CJJD), down 4.2% and New York & Company ( NWY), down 3.8%.
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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 $68.4 billion and is part of the services sector. The company has a P/E ratio of 25.5, above the S&P 500 P/E ratio of 17.7. Shares are up 3.6% year to date as of the close of trading on Friday.

TheStreet Ratings rates eBay as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Destination XL Group ( DXLG), down 23.7%, Casual Male Retail Group ( CMRG), down 23.7%, Delhaize Group ( DEG), down 11.1% and SUPERVALU ( SVU), down 6.4% , were all gainers within the retail industry with Kroger ( KR) 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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