EBay (EBAY) Flagging After Hours

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.

Trade-Ideas LLC identified eBay ( EBAY) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified eBay as such a stock due to the following factors:

  • EBAY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $450.1 million.
  • EBAY is down 2.2% today from today's close.

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More details on EBAY:

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 PE ratio of 26.5. Currently there are 22 analysts that rate eBay a buy, no analysts rate it a sell, and 8 rate it a hold.

The average volume for eBay has been 13.7 million shares per day over the past 30 days. eBay has a market cap of $70.6 billion and is part of the services sector and specialty retail industry. The stock has a beta of 0.92 and a short float of 1.5% with 2.06 days to cover. Shares are up 0.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant 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.

Highlights from the ratings report include:
  • EBAY INC has improved earnings per share by 14.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, EBAY INC increased its bottom line by earning $2.18 versus $1.99 in the prior year. This year, the market expects an improvement in earnings ($2.98 versus $2.18).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 16.4%. Since the same quarter one year prior, revenues rose by 13.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Although EBAY's debt-to-equity ratio of 0.17 is very low, it is currently higher than that of the industry average. To add to this, EBAY has a quick ratio of 1.74, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has increased to $1,713.00 million or 23.68% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 12.00%.

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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