Stock to Sell #2 – eBay (EBAY)
eBay (EBAY) is one of the most popular e-commerce sites, but acquisitions and expansion have limited growth for several years. Its entrance into developing markets has been unsteady, and regulatory and legal matters could have a negative impact on future earnings.
Although consensus earnings are expected to grow to $3.18 in 2014, up from an estimated $2.71 in 2013, that is far from certain. And at almost 20 times this year’s earnings, the stock is no bargain.
Technically EBAY is forming a bearish rounding top, and the 50-day moving average has crossed the 200-day moving average — a bearish signal called a death cross. Sell at the market.