Our first idea is an ecommerce company that is getting rave reviews from Wall Street, with 20 analysts recently increasing their estimates for the company. Our second recommendation is a sale of a company’s whose stock is not performing as expected.
Buy: eBay Inc. (EBAY)
From Wall Street Stock Forecaster
eBay Inc. (EBAY; TSINetwork Rating: Above Average) operates e-commerce websites where sellers pay fees to auction items or offer them at fixed prices. The company also operates several other websites, including StubHub (ticket sales). These services are in addition to its local websites (among them Kijiji in Canada); the company sells classified ads in over 1,500 cities.
The company has formed an alliance with Square Inc. (SQ) to offer eBay merchants access to loans ranging up to $100,000. Making it easier for those sellers to access capital should help Square expand its sales volumes on eBay’s platforms. Moreover, Square will make those loans, and assume all credit risks.
The stock trades at a reasonable 14.8 times eBay’s likely 2018 earnings of $2.29 a share.
eBay is a buy.
Patrick McKeough, Wall Street Stock Forecaster, www.tsinetwork.ca, 888-292-0296, October 2018