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In the latest trading session, Etsy (ETSY) closed at $97.11, marking a +0.25% move from the previous day. This change outpaced the S&P 500's 0.93% loss on the day. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, lost 0.14%.
Heading into today, shares of the online crafts marketplace had gained 23.04% over the past month, outpacing the Computer and Technology sector's loss of 12.29% and the S&P 500's gain of 6.31% in that time.
Wall Street will be looking for positivity from Etsy as it approaches its next earnings report date. This is expected to be July 27, 2022. In that report, analysts expect Etsy to post earnings of $0.33 per share. This would mark a year-over-year decline of 51.47%. Our most recent consensus estimate is calling for quarterly revenue of $563.35 million, up 6.51% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.04 per share and revenue of $2.53 billion. These totals would mark changes of -40% and +8.41%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Etsy. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.42% higher. Etsy is currently a Zacks Rank #4 (Sell).
Investors should also note Etsy's current valuation metrics, including its Forward P/E ratio of 47.39. This valuation marks a premium compared to its industry's average Forward P/E of 20.4.
We can also see that ETSY currently has a PEG ratio of 1.88. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 131, which puts it in the bottom 49% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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