Yahoo Finance Etsy (ETSY) Stock Sinks As Market Gains: What You Should Know
Etsy (ETSY) closed the most recent trading day at $87.56, moving -0.01% from the previous trading session. This change lagged the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.5%, and the Nasdaq, a tech-heavy index, lost 5.66%.
Coming into today, shares of the online crafts marketplace had lost 7.67% in the past month. In that same time, the Computer and Technology sector gained 9.07%, while the S&P 500 gained 3.44%.
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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.
It is also important to note the recent changes to analyst estimates for Etsy. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.42% lower. Etsy is currently a Zacks Rank #3 (Hold).
Investors should also note Etsy's current valuation metrics, including its Forward P/E ratio of 37.26. Its industry sports an average Forward P/E of 22.99, so we one might conclude that Etsy is trading at a premium comparatively.
Investors should also note that ETSY has a PEG ratio of 5.28 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services was holding an average PEG ratio of 1.57 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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Etsy, Inc. (ETSY) : Free Stock Analysis Report
