EarningsBeats.com Digest for April 29, 2020
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A Former Rock Star Is Set To Report Stellar Results
I remember in 1998 when eBay, Inc. (EBAY) first went public. Selling items on the internet, which seemed almost like a scene from a crazy Sci-Fi movie, was the rage and EBAY climbed 25-fold from its 1998 low to its 1999 high. It staged another impressive rally from 2001 through 2005, when it hit a high of 24.44. But it was more than 9 years later before we saw another print above 24.44. On the March 23rd S&P 500 low at 2191, EBAY hit a low
of 26.02. So essentially EBAY gained a little more than a buck fifty in 15 years. Heck, even the 10 year treasury yield's ($TNX) 0.60% return looks attractive compared to that! But that was then.....and this is now:
EBAY has been flying since that March 23rd low. Its SCTR score of 92 reflects that strength, despite being part of the specialized consumer services space ($DJUSCS), which just finally broke to new highs this week. The DJUSCS had been one of the worst areas of the market, ranking 70th out of 104 industries over the past three months. But over the past week, the group ranks 11th. We're seeing strength build both on an absolute and
relative basis in the industry and EBAY appears poised to deliver a superb earnings report after the bell - at least the accumulation on Wall Street seems to be telling us that. I'd watch that rising 20 day EMA very carefully on EBAY. I suspect that any "sell on the news" would likely set EBAY up for a compelling buy at that level, especially if quarterly results come in better than expected.
Happy trading!
Tom Bowley
Chief Market Strategist
EarningsBeats.com
Better Timing. Better Trades.
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