Etsy (ETSY) Ascends While Market Falls: Some Facts to Note
In the latest market close, Etsy (ETSY) reached $78.85, with a +0.97% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.1%. On the other hand, the Dow registered a gain of 0.33%, and the technology-centric Nasdaq decreased by 0.3%.
Heading into today, shares of the online crafts marketplace had gained 11.02% over the past month, lagging the Computer and Technology sector's gain of 11.35% and outpacing the S&P 500's gain of 5.78% in that time.
The upcoming earnings release of Etsy will be of great interest to investors. The company's earnings report is expected on February 21, 2024. On that day, Etsy is projected to report earnings of $0.78 per share, which would represent year-over-year growth of 1.3%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $827.4 million, up 2.5% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Etsy. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 0.91% higher within the past month. Etsy is currently a Zacks Rank #3 (Hold).
In terms of valuation, Etsy is presently being traded at a Forward P/E ratio of 28.84. This expresses a premium compared to the average Forward P/E of 23.18 of its industry.
We can additionally observe that ETSY currently boasts a PEG ratio of 7.45. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 2.41 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 156, positioning it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ETSY in the coming trading sessions, be sure to utilize Zacks.com.
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Etsy, Inc. (ETSY) : Free Stock Analysis Report
