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

Core Insights - Zacks Premium provides various tools to enhance investor confidence and market engagement, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][2] Zacks Style Scores - Zacks Style Scores rate stocks based on value, growth, and momentum characteristics, serving as complementary indicators to the Zacks Rank, helping investors identify securities likely to outperform the market in the next 30 days [3][4] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [4] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [4] Growth Score - The Growth Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth [5] Momentum Score - The Momentum Score leverages trends in stock price and earnings outlook, using factors like one-week price change and monthly earnings estimate changes to identify favorable investment opportunities [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator that evaluates stocks based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model based on earnings estimate revisions, which has shown a strong historical performance with 1 (Strong Buy) stocks yielding an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize potential success [9] - Stocks with lower ranks but high Style Scores may still be considered, provided they have a positive earnings forecast [10] Company Spotlight: eBay - eBay operates an online shopping platform, currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of A and a Value Style Score of B, supported by a forward P/E ratio of 12.73 [11] - Recent analyst revisions have increased eBay's earnings estimate for fiscal 2024 to $4.83 per share, with an average earnings surprise of 3.3%, making it a noteworthy option for investors [12]