Etsy (ETSY) Dips More Than Broader Market: What You Should Know
In the latest market close, Etsy (ETSY) reached $74.82, with a -1.16% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.32%. Meanwhile, the Dow experienced a drop of 0.71%, and the technology-dominated Nasdaq saw a decrease of 0.2%.
The online crafts marketplace's shares have seen an increase of 0.08% over the last month, not keeping up with the Computer and Technology sector's gain of 9.33% and the S&P 500's gain of 4.59%.
Market participants will be closely following the financial results of Etsy in its upcoming release. The company's earnings per share (EPS) are projected to be $0.78, reflecting a 1.3% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $827.4 million, indicating a 2.5% growth compared to the corresponding quarter of the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Etsy. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.2% higher within the past month. Etsy currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Etsy has a Forward P/E ratio of 27.96 right now. For comparison, its industry has an average Forward P/E of 23.78, which means Etsy is trading at a premium to the group.
We can additionally observe that ETSY currently boasts a PEG ratio of 7.23. 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 average PEG ratio for the Internet - Services industry stood at 2.51 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 115, this industry ranks in the top 46% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Etsy, Inc. (ETSY) : Free Stock Analysis Report
