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Valued at around $46 billion, eBay Inc. (EBAY) is an online shopping site that has evolved from a relatively small community user-based auction host to a commercial behemoth. It checks the boxes I like to see – including superior momentum in both strength and direction, as well as a Trend Seeker “Buy” signal, writes Jim Van Meerten, analyst at Barchart.

Since the Trend Seeker signaled a buy on July 10, the stock has gained 25.6%. eBay shares also hit a new all-time high on Aug. 13, topping $98.

eBay Stock Price vs. Daily Moving Averages

The stock has a Weighted Alpha of +89.6, a mostly “Moderate Buy” opinion from Barchart, and it’s recently been trading above its 20-, 50-, and 100-day moving averages. The Relative Strength Index has been seen at around 81.1%, and there’s technical support to be found at the $95.50 level.

Revenue is projected to grow 5.4% this year and another 4.7% next year, while earnings are estimated to increase 11.9% this year and an additional 9% next year. The Wall Street analysts tracked by Barchart have issued eight “Strong Buy,” two “Moderate Buy,” 18 “Hold,” and 2 “Sell” opinions on the stock. Their price targets are between $60-$107.

Bottom line? Ebay stock has been holding onto momentum and hitting new highs in recent trading. I must caution that the stock is volatile and even speculative in the current environment, which means investors should use strict risk management and stop-loss strategies.

About the Author

Jim Van Meerten earned a BS in Accounting and Business Administration from Berry College; a Juris Doctorate from the Woodrow Wilson School of Law; and attended post-baccalaureate and graduate courses in Business Administration, Quantitative Math, and Education at Florida Atlantic University, Georgia State University and University of North Carolina at Charlotte.

Previously he has been an accountant, attorney, adjunct professor in Business Law, Accounting and Internal Auditing, financial advisor, supervisory principal, and compliance officer. He also passed the Georgia CPA Exam, the Certified Internal Auditor Exam, and the FINRA Series 7, 24 and 9/10 exams.

He is presently an analyst at Barchart and writes "Chart of the Day," an article sent out daily that utilizes the tools available on Barchart.com, including screeners, Barchart technical indicators, and trading signals, to find stocks with compelling setups.

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