EBay Inc (EBAY): Today's Featured Services 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 Services sector higher today making it today's featured services winner. The sector as a whole closed the day up 0.8%. By the end of trading, eBay rose $0.78 (1.5%) to $52.07 on light volume. Throughout the day, 7,686,377 shares of eBay exchanged hands as compared to its average daily volume of 11,027,800 shares. The stock ranged in a price between $51.76-$52.74 after having opened the day at $51.90 as compared to the previous trading day's close of $51.29. Other companies within the Services sector that increased today were: Newlead Holdings ( NEWL), up 105.0%, FreeSeas ( FREE), up 64.3%, Destination XL Group ( DXLG), up 62.7% and Frontline ( FRO), up 27.8%.
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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 $66.8 billion and is part of the retail industry. The company has a P/E ratio of 25.0, above the S&P 500 P/E ratio of 17.7. Shares are up 0.6% year to date as of the close of trading on Friday. Currently there are 23 analysts that rate eBay a buy, no analysts rate it a sell, and 5 rate it a hold.

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 negative front, SmartPros ( SPRO), down 11.4%, General Employment ( JOB), down 11.1%, Cambium Learning Group ( ABCD), down 8.8% and Digital Domain Media Group ( DDMG), down 8.1% , were all laggards within the services sector with Liberty Global ( LBTYA) being today's services sector laggard.

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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