eBay (EBAY) to Win Auto Parts Customers Via myFitment Buyout
eBay EBAY has acquired myFitment group of companies (myFitment).
myFitment offers powerful technology-enabled tools to help online automotive, and powersports parts and accessories sellers attract more customers, increasing sales and growth in their businesses.
With the takeover of myFitment, eBay strengthened its parts and accessories category.
Moreover, myFitment’s robust technology will help EBAY gain momentum among vehicle and motorsport sellers and buyers, thus driving its revenues in the days ahead.
Evidently, eBay will gain investor confidence in the near and the long term.
Shares of EBAY have lost 31.7% in the year-to-date period, lagging the Zacks Retail-Wholesale sector’s decline of 17.2%.
eBay Inc. Price and Consensus
eBay Inc. price-consensus-chart | eBay Inc. Quote
Strategic Moves a Key Lever
The recent buyout of myFitment will help eBay expand its presence in the booming motor vehicle parts market.
The underlined market is witnessing significant growth in recent times owing to the growing usage of advanced technology in auto parts fabrication, an increase in consumer and passenger automobile production, and the digitalization of automotive repair and maintenance services.
Per a Research and Markets report, the global motor vehicle parts market is likely to reach a value of $3.81 trillion in 2025, witnessing a CAGR of 8% from 2021 to 2025.
Array of Acquisitions
Strategic acquisitions have been shaping up the growth trajectory of Garmin by expanding its product offerings.
Apart from the recent buyout, eBay acquired UK-based KnownOrigin in June 2022. KnownOrigin is equipped with robust technology, enabling creators to make authentic digital collectibles in the form of NFTs. Its technology helped it attract a significant number of artistes and collectors to its platform, which remains an advantage for eBay.
This month, EBAY entered into an agreement to purchase TCGplayer, a marketplace for collectible card game enthusiasts. The growing marketplace and robust technology of TCGplayer are likely to aid eBay in gaining traction from the collectible card lovers in the near term.
Zacks Rank & Stocks to Consider
Currently, eBay carries a Zacks Rank #3 (Hold). Investors interested in the retail-wholesale sector can consider better-ranked companies like Insight Enterprises NSIT, Arcos Dorados ARCO and Dollar Tree DLTR. While Insight Enterprises sports a Zacks Rank #1 (Strong Buy), Arcos Dorados and Dollar Tree carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Insight Enterprises has lost 11.1% in the year-to-date period. The long-term earnings growth rate for the NSITstock is currently projected at 12%.
Arcos Dorados has gained 27.2% in the year-to-date period. The long-term earnings growth rate for the ARCOstock is currently projected at 34.4%.
Dollar Tree has returned 19.1% in the year-to-date period. The long-term earnings growth rate for the DLTRstock is currently projected at 15.5%.
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