EBay quickly returned to sales and profit growth this year after 2022's bear market. Its strong long-term profit growth is reflected in its 87 Earnings Per Share Rating, which puts the online retailer among the top 13% of all companies for profit growth. Additionally, on Monday the IBD Relative Strength (RS) Rating for eBay stock rose to 73, up from 66 last week.
CEO Jamie Iannone says he's banking on emerging technologies like AI to drive further growth for eBay but recognizes there are challenges.
EBay Stock Growth Pegged To Tech Advances
"we're raising the bar for innovation and have evolved our vision — to reinvent the future of ecommerce for enthusiasts, only at eBay. This work is already producing compelling results, and we are confident the sharper focus will deliver long-term returns to our shareholders," Iannone said in the company's July 26 second quarter earnings release, the latest reported quarter.
The upgraded 73 RS Rating shows that eBay stock topped more than 70% of all stocks for price performance this past year. Market research has found that the best-performing stocks typically have an RS Rating north of 80 in the early stages of their moves. See if eBay can continue to show renewed price strength and clear that threshold.
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Among its other key ratings, San Jose, Calif.-based eBay stock has a decent but not great 78 Composite Rating, putting it in the top 22% of companies overall. However, it sports a top-notch A SMR Rating (sales + profit margins + return on equity) on an A-to-E scale with A terrific and E worst.
Its D+ Accumulation/Distribution Rating shows that institutional investors such as insurance funds and ETFs are selling more shares than buying. Expect that to change. That's offset by a rising number of top-rated funds holding eBay stock. That number rose from 2,473 at the end of the March quarter to 2,517 in September.
Building A Consolidation Buy Point
EBay stock fell to a 35.92 low in mid-October 2022 and rose as high as 52.23 on Feb. 2 this year. It's consolidated since then and closed at 43.55 Monday, down for the day. It's building a consolidation with a 52.23 buy point. See if it can break out in heavy trade.
Earnings grew a mild 4% last quarter to $1.03 per share, on a 5% rise in revenue to $2.54 billion. The company is expected to report its latest earnings and sales numbers on or around Oct. 25.
EBay stock earns the No. 9 rank among its peers in the 60-stock Retail-Internet industry group. PDD Holdings and Liquidity Services are among the group's highest-rated stocks.
As you try to find the best stocks to buy and watch, be sure to pay attention to relative price strength.
This proprietary Relative Strength Rating identifies technical performance by showing how a stock's price movement over the last 52 weeks compares to that of the other stocks in our database.
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