Ebay

Rising inflation doesn't hurt everyone equally, with those in lower socioeconomic strata and younger folk feeling the full force of impact. When a company is involved in e-commerce, it helps to have lower cost options in one's offering. For eBay (EBAY), this comes in the form of refurbished and pre-owned product categories, an area which the firm is expected to expand.

Colin Sebastian of Robert W. Baird recently reported on the online marketplace and auction site, noting that in regards to inflation "eBay's unique offering of pre-owned and value merchandise should mitigate those headwinds, or even benefit the platform." He went on to explain that Gen Z consumers are highly interested in this segment, with 80% of them buying the goods, according to a company survey.

Sebastian rated the stock a buy, and added a price target of $80 per share.

The top-ranked analyst went on to elaborate that "the platform's value-price orientation could help offset consumer spending softness among lower and middle-income consumers."

In the near-term, the analyst expects EBAY to make several announcements such as a digital wallet and a heightened focus on auto parts sales. (See Ebay Website Visits on TipRanks.)

When reporting quarterly earnings, e-commerce firms have had a rough time beating pandemic-era comparisons, as slowing consumer trends compound with supply-side constraints and an inflationary environment. Ebay is anticipated by Sebastian to meet its guidance come May 4, although a beat and raise would be highly bullish considering these challenges.

Out of nearly 8,000 analysts on TipRanks, Sebastian ranks as #158. His success rate stands at 52%, and he maintains an average return of 37.1% per