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

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 higher today making it today's featured services winner. The sector as a whole closed the day up 1.1%. By the end of trading, eBay rose $0.55 (1.1%) to $53.13 on average volume. Throughout the day, 13,010,286 shares of eBay exchanged hands as compared to its average daily volume of 12,244,700 shares. The stock ranged in a price between $51.56-$53.18 after having opened the day at $52.84 as compared to the previous trading day's close of $52.58. Other companies within the Services sector that increased today were: Valassis Communications ( VCI), up 22.3%, VisionChina Media ( VISN), up 16.7%, ModusLink Global Solutions ( MLNK), up 13.0% and Nevada Gold & Casinos ( UWN), up 12.6%.

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 $68.8 billion and is part of the retail industry. The company has a P/E ratio of 25.3, above the S&P 500 P/E ratio of 17.7. Shares are up 4.1% 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 negative front, DLH Holdings ( DLHC), down 9.4%, Martha Stewart Living Omnimedia ( MSO), down 7.2%, China Nepstar Chain Drugstore ( NPD), down 6.9% and FreeSeas ( FREE), down 5.7% , were all laggards within the services sector with Conn's ( CONN) 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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