eBay Stock outlook july 16-20 2012

eBay Stock outlook july 16-20 2012 : eBay is trading below its consensus estimates and its 52 week high. The company is trading 9% below its 52 week high and has 10% upside based on the analysts' consensus mean target price of $44.12 for the company. eBay was trading Friday at $39.97, up almost 2% for the day.

The company has many fundamental positives. eBay has a net profit margin of 26.84%. eBay has a forward PE of 14.40, a PEG ratio of 1.18 and a return on equity of 19.18%. Quarter over quarter sales and EPS growth are 28.73% and 20.90% respectively.

PayPal's mobile payments service is the key to eBay's growth. eBay's mobile payment business has exploded from a few hundred million dollar business in 2009 to a $7 billion business in 2012. Only a small percentage of smart phone users currently use the service today, I predict that will soon change and eBay's mobile payments exponential growth rate support my thesis. eBay's PayPal exemplifies the exponential growth potential for mobile payments. eBay recently reported revenue for the first quarter ended March 31, 2012, which increased 29% to $3.3 billion, compared to the same period of 2011.

eBay is in a well-defined uptrend. The stock is currently resting at the bottom of the upward trend channel. I see the stock rising into earnings due out on July 18th. I like the stock here.

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