Poised for a potential break-out on earnings today
eBay is a cheap e-commerce name that has spent years underperforming (for good reason). Now could be its time to make a significant break-out on the way to a re-rating.
Its enterprise value has largely not moved in 10 years, as stock buybacks have gradually inflated the share price.
2021 is expected to return eBay to significant, mid-teens revenue growth. That, along with higher take rates thanks to managed payments and new initiatives like authenticating sneaker sales, could propel this stock higher. The key thing is that it doesn't need to do much to improve its dismal 13.8x forward P/E.
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