Stocks to Sell: eBay (EBAY)
Ebay (EBAY) was having a down year even before it disclosed a massive data breach. Mixed fundamentals and crummy technicals may be piling on, but there’s no doubt EBAY looks to have more weakness ahead.
Ebay is trading below too many key levels to have any price momentum at all. It’s 13% below its 52-week high, 3.5% below its 50-day moving average and 3.4% short of its 200-day moving average.
Nor does eBay have any price momentum from being oversold. The relative strength indicator stands at 45 vs. an industry average of 47. As weak as the price looks, investors haven’t bailed out enough to warrant buying on valuation.
If all that weren’t bad enough, June might be a great month for the market, but it stinks for eBay stock. Historically, eBay loses 4.7% in June, gaining back about half that in July.
If you’re looking for stocks to sell, eBay has to go. The technicals say eBay will only weigh on your portfolio for at least a month.