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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

eBay ( EBAY) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day down 1.1%. By the end of trading, eBay fell $0.55 (-1.1%) to $51.37 on light volume. Throughout the day, 7,985,129 shares of eBay exchanged hands as compared to its average daily volume of 12,232,200 shares. The stock ranged in price between $51.31-$52.07 after having opened the day at $51.87 as compared to the previous trading day's close of $51.92. Other companies within the Services sector that declined today were: Qunar Cayman Islands Ltd ADR ( QUNR), down 9.9%, SFX Entertainment ( SFXE), down 9.5%, Huttig Building Products ( HBP), down 8.7% and Huttig Building Products ( HBPI), down 8.7%.

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 $66.9 billion and is part of the retail industry. The company has a P/E ratio of 24.6, above the S&P 500 P/E ratio of 17.7. Shares are up 1.4% year to date as of the close of trading on Tuesday. Currently there are 25 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, growth in earnings per share and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Global Ship Lease ( GSL), up 11.9%, Swisher Hygiene ( SWSH), up 11.6%, China Auto Logistics ( CALI), up 8.9% and WidePoint Corporation ( WYY), up 8.7% , were all gainers within the services sector with Macy's ( M) 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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