Etsy (ETSY) closed the most recent trading day at $81.99, moving +1.16% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.99%.
Coming into today, shares of the online crafts marketplace had lost 18.1% in the past month. In that same time, the Computer and Technology sector gained 8.96%, while the S&P 500 gained 0.42%.
Investors will be hoping for strength from Etsy as it approaches its next earnings release. The company is expected to report EPS of $0.41, down 19.61% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $620.98 million, up 6.12% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.35 per share and revenue of $2.76 billion. These totals would mark changes of -13.6% and +7.7%, respectively, from last year.
Any recent changes to analyst estimates for Etsy should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.54% lower. Etsy is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Etsy has a Forward P/E ratio of 34.49 right now. This valuation marks a premium compared to its industry's average Forward P/E of 22.82.
Also, we should mention that ETSY has a PEG ratio of 4.89. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ETSY's industry had an average PEG ratio of 1.6 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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