On Tuesday, Ebay (EBAY) earned an upgrade to its Relative Strength (RS) Rating, from 67 to 72. Amazon.com‘s (AMZN) amazing growth led market watchers to wonder how many of its rivals would survive. EBay is among the select few that have not only survived but thrived after being forced to adapt in the highly competitive digital retail market.
The 72 Relative Strength Rating means that eBay has outperformed 72% of all stocks, regardless of industry group. Although good, the rating isn’t great yet. The best stocks typically have an 80 or higher RS Rating as they begin their biggest climbs. See if eBay can continue to show rising price strength and clear that threshold.
Other Strong EBay Ratings
In addition to a rising RS Rating, eBay has a 92 EPS Rating, on a 1-99 scale with 99 tops. The 92 rating reflects strong recent quarters and long-term profit growth. In its most recent quarter, eBay reported 30% EPS growth to 86 cents a share. That followed outstanding profit growth of 52%, 52% and 63% in the prior three periods.
Revenue grew 28% last quarter vs. a year earlier, to $2.87 billion. EBay’s sales growth has accelerated over the past three quarters from 11% to 25% to 28%.
Big money investors have noticed this rapid sales and profit growth. EBay sports an excellent A- Accumulation/Distribution Rating. IBD’s Accumulation/Distribution Rating rates a stock on an A+ to E scale for amount of institutional investor support. EBay’s A- Rating indicates heavy buying by big money investors.
Shares More Than Double Coronavirus Low
EBay shares edged up fractionally to 62.32 Wednesday, a 239% jump from its coronavirus market low 26.02 on March 23. JD rose 1.8% and Vipshop fell 0.6% Wednesday.
The stock, which is on the IBD Big Cap 20 list, is now considered extended and out of buy range after clearing a 58.44 buy point in a second-stage double bottom. See if the stock forms a new chart pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD’s proprietary rating identifies price action with a 1 (worst) to 99 (best) score. The grade shows how a stock’s price performance over the trailing 52 weeks stacks up against all the other stocks in our database.
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