4-Star Stocks Poised to Pop: eBay

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online marketplace giant eBay (NAS: EBAY) has earned a respected four-star ranking.

With that in mind, let's take a closer look at eBay's business and see what CAPS investors are saying about the stock right now.

eBay facts

Headquarters (founded)

San Jose, Calif. (1995)

Market Cap

$53.2 billion

Industry

Internet software and services

Trailing-12-Month Revenue

$12.4 billion

Management

CEO John Donahoe (since 2008)
CFO Robert Swan (since 2006)

Return on Equity (average, past 3 years)

17.0%

Cash/Debt

$5.9 billion / $2.1 billion

Competitors

Amazon.com
Google
Yahoo!


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 87% of the 4,165 members who have rated eBay believe the stock will outperform the S&P 500 going forward.

A couple of months ago, one of those bulls, fellow Fool Bryan Hinmon (TMF42), offered three simple reasons to look into the stock:

1. War on cash (electronic payment growth) -- PayPal is well positioned
2. [eBay] is the next best alternative to Amazon.com -- for both buyers and sellers
3. [eBay] doesn't compete with the businesses that sell through its platform -- something that will eventually catch up with Amazon

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, eBay may not be your top choice.

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Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Amazon, Google, and Yahoo!. Motley Fool newsletter services have recommended buying shares of eBay, Amazon, Google, and Yahoo!. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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