eBay, Inc. (EBAY) recently jumped back within striking distance of its multi-year high on word the Fed was lifting restrictions on debt cars. But the bigger picture looks good too, with the next-year estimate projecting 17% growth for this Zacks #1 rank stock.
Company Description
eBay operates an online market place and auction site and offers payments solutions worldwide. The company was founded in 1995 and has a market cap of $42 billion.
Shares of eBay have been quietly rallying over the last 9 months, recently surging back to its multi-year high on news the Fed would losses restrictions on debt-card fees. The upward movement comes on the heels of solid Q1 results from early May that showed big gains from last year.
First-Quarter Results
Revenue for the period was up 16% from last year to $2.2 billion. Earnings also looked good, coming in at 40 cents per share, directly in line with the Zacks Consensus Estimate.
PayPal continues to be a bright spot for the company, with registered accounts up 16% from last year to 98 million while payment volumes were up 28%.
Financial Profile
The company also has an awesome financial profile, with cash and short-term investments up $2.24 billion from last year to $6.8 billion against a total debt load of $1.8 billion.
Estimates
Although the current-year estimate was a it flat, the next-year estimate added 7 cents to $1.98 off the good quarter, a bullish 17% growth projection.
Valuation
But in spite of the recent gains, eBay still looks reasonably valued, trading with a PEG ratio of 1.15, only marginally higher than the benchmark for value of 1.
12-Month Chart
On the chart, shares are trading within striking distance of their multi-year high at $35.35. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.
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