eBay Inc. (EBAY) Soars to 52-Week High, Time to Cash Out?

Shares of eBay (EBAY) have been strong performers lately, with the stock up 10% over the past month. The stock hit a new 52-week high of $81.91 in the previous session. eBay has gained 32% since the start of the year compared to the 6.2% move for the Zacks Retail-Wholesale sector and the 10.3% return for the Zacks Internet - Commerce industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 30, 2025, eBay reported EPS of $1.38 versus consensus estimate of $1.34.For the current fiscal year, eBay is expected to post earnings of $5.35 per share on $10.64 in revenues. This represents a 9.63% change in EPS on a 3.46% change in revenues. For the next fiscal year, the company is expected to earn $5.86 per share on $11.08 in revenues. This represents a year-over-year change of 9.59% and 4.17%, respectively.Valuation MetricseBay may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.eBay has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 15.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 22.7X. On a trailing cash flow basis, the stock currently trades at 17.1X versus its peer group's average of 17.4X. Additionally, the stock has a PEG ratio of 1.84. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, eBay currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if eBay fits the bill. Thus, it seems as though eBay shares could have a bit more room to run in the near term.How Does EBAY Stack Up to the Competition?Shares of EBAY have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Amazon.com, Inc. (AMZN). AMZN has a Zacks Rank of #1 (Strong Buy) and a Value Score of D, a Growth Score of B, and a Momentum Score of B.Earnings were strong last quarter. Amazon.com, Inc. beat our consensus estimate by 17.78%, and for the current fiscal year, AMZN is expected to post earnings of $6.27 per share on revenue of $695.72 billion.Shares of Amazon.com, Inc. have gained 6.9% over the past month, and currently trade at a forward P/E of 36.28X and a P/CF of 21.52X.The Internet - Commerce industry is in the top 28% of all the industries we have in our universe, so it looks like there are some nice tailwinds for EBAY and AMZN, even beyond their own solid fundamental situation.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report eBay Inc. (EBAY): Free Stock Analysis Report Amazon.com, Inc. (AMZN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks