eBay Inc. (NASDAQ: EBAY) is set to release its fourth-quarter earnings report after the markets close Wednesday. Thomson Reuters consensus estimates are calling for $0.50 in EPS on $2.32 billion in revenue. The same period from the previous year had $0.55 in EPS on $4.92 billion in revenue.
This leader in e-commerce has fallen way out of favor and could be an outstanding purchase at current levels. eBay operates a leading online marketplace that enables consumers to purchase goods globally. eBay has more than 155 million active users and generated more than $80 billion in gross merchandise volume in 2014. eBay also operates Stubhub, Half.com, brands4friends and a number of classifieds businesses globally.
Many see eBay as not only a continuing success story, but a solid holding during volatile times like we are experiencing now. In fact, the company displayed outstanding defensive qualities even in 2008, when gross merchandise value still grew 3%. eBay traditionally has reported better margins and greater capital efficiency than most traditional retailers, since it has no inventory or stores to put on a balance sheet.
Ahead of the earnings report a few analysts weighed in on eBay:
- RBC Capital reiterated a Sector Perform rating with a $30 price target.
- Cantor Fitzgerald reiterated a Hold rating with a $27 price target.
- Baird reiterated a Buy rating with a $33 price target.
So far in 2016, eBay has outperformed the broad markets, with the stock down only 3%. Over the past 52 weeks, the stock is up 13%.
Share of eBay were trading at $26.72 on Wednesday, with a consensus analyst price target of $30.48 and a 52-week trading range of $22.11 to $29.83.
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