Why eBay (EBAY) is a Top Momentum Stock for the Long-Term

Zacks Investment Research highlights eBay (EBAY) as a compelling momentum stock, citing a VGM Score of A and a Momentum Style Score of B. Over the past four weeks, EBAY shares have increased by 12.6%, and the consensus earnings estimate for fiscal year 2025 has risen by $0.06 to $5.35 per share following upward revisions from seven analysts in the last 60 days.

Analysis

eBay (EBAY) is currently rated as a #3 (Hold) by Zacks, yet exhibits strong characteristics attractive to momentum-oriented investors, evidenced by a VGM Score of A and a Momentum Style Score of B. The company's shares have demonstrated significant recent strength, appreciating 12.6% over the past four weeks. This price performance is supported by positive revisions to its earnings outlook; specifically, seven analysts have revised their earnings estimates upward for fiscal 2025 within the last 60 days. Consequently, the Zacks Consensus Estimate for fiscal 2025 earnings per share has increased by $0.06 to $5.35. Furthermore, eBay has a track record of outperforming expectations, boasting an average earnings surprise of 3.1%. According to Zacks' methodology, a #3 ranked stock with A or B Style Scores, such as EBAY, still warrants consideration for its potential upside, particularly aligning with the positive sentiment indicated by analyst actions and recent market performance.

Key Decisions for Investors

• Investors focused on momentum strategies should note EBAY's B Momentum Style Score, recent 12.6% share price increase, and positive earnings estimate revisions as supportive indicators.
• While the Zacks Rank is currently #3 (Hold), the strong A for VGM and B for Momentum suggest underlying strength; an upgrade to a #1 (Strong Buy) or #2 (Buy) rank would further validate the positive outlook.
• Monitor the ongoing trend in earnings estimate revisions for fiscal 2025, currently at $5.35 per share, and the company's ability to maintain its average earnings surprise of 3.1% as key factors that could sustain or enhance its investment appeal.