Bull’s Eye Report: eBay (EBAY)

eBay has solid support at $53.30

   

At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

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Company Symbol Industry Stock Rating YTD% Gain S.T.
Stop Loss
eBay Inc EBAY Internet Software & Services 9.6 +2.67% $53.16

Why We Like The Stock:

eBay Inc. (NASDAQ:EBAY) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) in one of our top-rated sub-industries, Internet Software & Services. While its competitors Yahoo! Inc. (NASDAQ:YHOO), LinkedIn (NYSE:LNKD) and Google (NASDAQ:GOOG) all needed second-half surges in 2012 to jumpstart their current uptrends, EBAY has been as consistent as stocks get since the beginning of last year. Firmly entrenched in a roaring uptrend, EBAY recently traded as high as $57.30, which represents the immediate upside of a short-term trade. The stock has solid support around $53.30, and setting a careful stop just below at $53.16 limits the downside considerably. We like EBAY at current prices as this recent pullback has given us a good entry point. With a target of ~$57.30 and a stop at $53.16, EBAY is a relatively low risk / high reward trade, which is our favorite kind of trade.

We Would Be Buyers:

At the current price (~$54.20).

Company Profile:

eBay Inc. is a global technology company that enables commerce through three reportable segments: Marketplaces, Payments, and GSI. By providing online platforms, tools and services to help individuals and small, medium and merchants around the globe engage in online and mobile commerce and payments, the company can facilitate transactions. It has created an open source platform that provides software developers and merchants access to its applications programming interfaces, or APIs, to develop software and solutions for commerce. As of December 31, 2012, its Marketplaces segment had more than 112 million active users and more than 350 million listings globally, while its Payments segment had more than 122 million active registered accounts. During the fiscal year ended December 31, 2012, the company completed three acquisitions, two of which are included in its Marketplaces segment and one in its Payments segment. In May 2012, the company completed the sale of Rent.com.

Stock Rating: 9.6

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

EBAY – Last Three Months

ebay 1 300x168 Bulls Eye Report: eBay (EBAY)
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EBAY – Last 12 Months

ebay 2 300x168 Bulls Eye Report: eBay (EBAY)
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EBAY – Last Six Months

ebay 3 300x168 Bulls Eye Report: eBay (EBAY)
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At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.


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