Validea's Leading Consumer Discretionary Stocks According to Martin Zweig - 10/28/2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 28 2025
0mins
Should l Buy EBAY?
Source: NASDAQ.COM
Top Rated Consumer Discretionary Stocks: Validea's Growth Investor model highlights several top-rated Consumer Discretionary stocks, including Ralph Lauren Corp, O'Reilly Automotive Inc, American Eagle Outfitters Inc, eBay Inc, and Floor & Decor Holdings Inc, all scoring 69% based on their fundamentals and valuations.
Ralph Lauren Corp Overview: Ralph Lauren Corporation is a luxury lifestyle brand involved in designing and marketing apparel, footwear, and home products, with a strong presence in North America, Europe, and Asia.
O'Reilly Automotive Inc Overview: O'Reilly Automotive, Inc. specializes in automotive aftermarket parts and accessories, catering to both DIY customers and professional service providers across the United States.
Validea and Martin Zweig: Validea is an investment research service that utilizes strategies from investment legends like Martin Zweig, who achieved an average annual return of 15.9% over 15 years, focusing on growth stocks with strong fundamentals.
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Analyst Views on EBAY
Wall Street analysts forecast EBAY stock price to rise
8 Analyst Rating
2 Buy
5 Hold
1 Sell
Hold
Current: 79.410
Low
60.00
Averages
95.00
High
112.00
Current: 79.410
Low
60.00
Averages
95.00
High
112.00
About EBAY
eBay Inc. is a global commerce company. The Company's technology empowers buyers and sellers in more than 190 markets around the world. The Company's business includes its online marketplace located at www.ebay.com and its localized counterparts, its off-platform marketplaces and its suite of mobile apps. It provides a number of features for its sellers and buyers that align with its approach of leveraging technology, including generative AI, to enhance the marketplace experience for its customers. For sellers, the Company is focused on simplifying their business processes to help drive their sales. The Company offers the eBay International Shipping program for sellers in the United States. For buyers, it is changing the way they find inventory through discovery, personalization and other experiences. It launched Explore, an AI-powered shopping feed enabling users to browse a list of personalized recommendations based on their interests, style preferences, and sizes.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analyzing eBay's Future Growth Potential
- Earnings Expectations: eBay is expected to report fourth-quarter earnings of approximately $1.35 per share and revenue of around $2.87 billion on February 18, aligning with management's guidance for high-single-digit revenue growth, indicating resilience amid economic pressures.
- Advertising Revenue Growth: In Q3, eBay's advertising business generated $525 million in revenue, accounting for 2.6% of GMV, showcasing a high-margin, recurring revenue model that is transforming the quality of its earnings and positioning the company as an advertising-centric platform.
- Market Competition Analysis: While the market still views eBay as a traditional resale marketplace, its growing advertising engine is reshaping the competitive landscape against Amazon, highlighting eBay's evolution into a monetization platform that enhances transaction value through AI-driven discovery tools and promoted listings.
- Investment Recommendation: Given the uneven consumer spending, fierce competition, and macro pressures, it is advisable for investors to consider buying eBay stock only for the long term, rather than for short-term gains, especially ahead of the upcoming earnings report.
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- Market Performance: Equities experienced a decline last week, with all three major indexes falling by at least 1.2%.
- Economic Indicators: This downturn occurred despite a better-than-expected jobs report from the Bureau of Labor Statistics and a relatively stable inflation report.
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AI Turbulence Impacts Market Performance
- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
eBay: A Solid Long-Term Investment Choice
- Advertising Growth: eBay's advertising revenue reached $525 million in Q3, accounting for 2.6% of GMV, indicating that its advertising business is growing faster than the overall company, showcasing a shift towards an advertising-centric profit model.
- Earnings Expectations: Analysts anticipate eBay will report earnings of approximately $1.35 per share and revenue of around $2.87 billion on February 18, aligning with management's guidance for high-single-digit revenue growth, reflecting continued business expansion despite economic pressures.
- Market Position Shift: eBay has evolved from merely a resale marketplace into a platform with a robust advertising engine, leveraging AI-driven discovery tools and promoted listings to enhance transaction value, thereby strengthening its competitive position in the market.
- Cautious Investment Advice: While eBay's business shows steady growth, due to uneven consumer spending, fierce competition, and macroeconomic pressures, investors are advised to be cautious about purchasing before the next earnings report, especially if they are looking for long-term holds rather than short-term trades.
See More
Next Week's Market Focus: Walmart Earnings
- Walmart Earnings Expectations: Analysts anticipate Walmart will report its fourth-quarter earnings on Thursday, with net sales expected to rise approximately 4% and operating income potentially increasing by 11%, further solidifying its status as a trillion-dollar company.
- Consumer Health Insights: Investors will closely monitor Walmart's commentary on consumer health and its 2026 financial guidance to assess future market trends and corporate strategy.
- FOMC Meeting Minutes Release: The minutes from the January FOMC meeting will be released on Wednesday, providing insights into policymakers' views on the path of interest rates, especially after holding rates steady at the start of the year, which has generated significant market interest.
- Personal Consumption Expenditures Data: On Friday, the Personal Consumption Expenditures (PCE) data will be released, which is the Fed's preferred inflation gauge, and the market will be keen to see if it confirms that inflation is steadily cooling or prompts the Fed to maintain a cautious stance.
See More
Analysis of Investment Opportunities in High-Growth Stocks
- SoFi Business Expansion: SoFi has expanded from offering only student loans to a comprehensive suite of financial services, increasing its member base from 2.5 million at the end of 2021 to 13.7 million by the end of 2025, indicating strong appeal among younger demographics, with projected revenue CAGR of 24% in the coming years.
- Impact of Galileo Acquisition: The acquisition of payment processor Galileo in 2020, which operates independently and manages nearly 160 million accounts, has enhanced SoFi's competitive edge and service offerings, with analysts forecasting a 40% CAGR for adjusted EBITDA from 2025 to 2027.
- Adyen's Flexible Payment Solutions: Adyen integrates its backend payment software into merchants' existing platforms, allowing acceptance of over 250 payment methods, with expected revenue and adjusted EBITDA CAGRs of 21% and 24% respectively from 2025 to 2027, showcasing its robust growth potential.
- Valuation Appeal: With an enterprise value of €20.2 billion (approximately $24 billion), Adyen trades at 13 times this year's adjusted EBITDA, presenting an attractive valuation for investors seeking undervalued high-growth opportunities in the fintech sector.
See More
Analyzing eBay's Future Growth Potential
- Earnings Expectations: eBay is expected to report fourth-quarter earnings of approximately $1.35 per share and revenue of around $2.87 billion on February 18, aligning with management's guidance for high-single-digit revenue growth, indicating resilience amid economic pressures.
- Advertising Revenue Growth: In Q3, eBay's advertising business generated $525 million in revenue, accounting for 2.6% of GMV, showcasing a high-margin, recurring revenue model that is transforming the quality of its earnings and positioning the company as an advertising-centric platform.
- Market Competition Analysis: While the market still views eBay as a traditional resale marketplace, its growing advertising engine is reshaping the competitive landscape against Amazon, highlighting eBay's evolution into a monetization platform that enhances transaction value through AI-driven discovery tools and promoted listings.
- Investment Recommendation: Given the uneven consumer spending, fierce competition, and macro pressures, it is advisable for investors to consider buying eBay stock only for the long term, rather than for short-term gains, especially ahead of the upcoming earnings report.
See More
Key Companies to Monitor This Week: PCE, Walmart, Palo Alto, Analog Devices, Deere, and Others
- Market Performance: Equities experienced a decline last week, with all three major indexes falling by at least 1.2%.
- Economic Indicators: This downturn occurred despite a better-than-expected jobs report from the Bureau of Labor Statistics and a relatively stable inflation report.
See More
AI Turbulence Impacts Market Performance
- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
eBay: A Solid Long-Term Investment Choice
- Advertising Growth: eBay's advertising revenue reached $525 million in Q3, accounting for 2.6% of GMV, indicating that its advertising business is growing faster than the overall company, showcasing a shift towards an advertising-centric profit model.
- Earnings Expectations: Analysts anticipate eBay will report earnings of approximately $1.35 per share and revenue of around $2.87 billion on February 18, aligning with management's guidance for high-single-digit revenue growth, reflecting continued business expansion despite economic pressures.
- Market Position Shift: eBay has evolved from merely a resale marketplace into a platform with a robust advertising engine, leveraging AI-driven discovery tools and promoted listings to enhance transaction value, thereby strengthening its competitive position in the market.
- Cautious Investment Advice: While eBay's business shows steady growth, due to uneven consumer spending, fierce competition, and macroeconomic pressures, investors are advised to be cautious about purchasing before the next earnings report, especially if they are looking for long-term holds rather than short-term trades.
See More
Next Week's Market Focus: Walmart Earnings
- Walmart Earnings Expectations: Analysts anticipate Walmart will report its fourth-quarter earnings on Thursday, with net sales expected to rise approximately 4% and operating income potentially increasing by 11%, further solidifying its status as a trillion-dollar company.
- Consumer Health Insights: Investors will closely monitor Walmart's commentary on consumer health and its 2026 financial guidance to assess future market trends and corporate strategy.
- FOMC Meeting Minutes Release: The minutes from the January FOMC meeting will be released on Wednesday, providing insights into policymakers' views on the path of interest rates, especially after holding rates steady at the start of the year, which has generated significant market interest.
- Personal Consumption Expenditures Data: On Friday, the Personal Consumption Expenditures (PCE) data will be released, which is the Fed's preferred inflation gauge, and the market will be keen to see if it confirms that inflation is steadily cooling or prompts the Fed to maintain a cautious stance.
See More
Analysis of Investment Opportunities in High-Growth Stocks
- SoFi Business Expansion: SoFi has expanded from offering only student loans to a comprehensive suite of financial services, increasing its member base from 2.5 million at the end of 2021 to 13.7 million by the end of 2025, indicating strong appeal among younger demographics, with projected revenue CAGR of 24% in the coming years.
- Impact of Galileo Acquisition: The acquisition of payment processor Galileo in 2020, which operates independently and manages nearly 160 million accounts, has enhanced SoFi's competitive edge and service offerings, with analysts forecasting a 40% CAGR for adjusted EBITDA from 2025 to 2027.
- Adyen's Flexible Payment Solutions: Adyen integrates its backend payment software into merchants' existing platforms, allowing acceptance of over 250 payment methods, with expected revenue and adjusted EBITDA CAGRs of 21% and 24% respectively from 2025 to 2027, showcasing its robust growth potential.
- Valuation Appeal: With an enterprise value of €20.2 billion (approximately $24 billion), Adyen trades at 13 times this year's adjusted EBITDA, presenting an attractive valuation for investors seeking undervalued high-growth opportunities in the fintech sector.
See More
