Etsy (ETSY) Gains As Market Dips: What You Should Know
Etsy (ETSY) closed the most recent trading day at $167.13, moving +0.98% from the previous trading session. This change outpaced the S&P 500's 1.04% loss on the day.
Coming into today, shares of the online crafts marketplace had lost 23.16% in the past month. In that same time, the Computer and Technology sector gained 3.67%, while the S&P 500 gained 3.83%.
In that report, analysts expect ETSY to post earnings of $0.58 per share. This would mark a year-over-year decline of 22.67%. Our most recent consensus estimate is calling for quarterly revenue of $531.83 million, up 24.05% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.81 per share and revenue of $2.23 billion. These totals would mark changes of +4.46% and +29.08%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for ETSY. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.32% lower within the past month. ETSY is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, ETSY is holding a Forward P/E ratio of 58.83. For comparison, its industry has an average Forward P/E of 27.66, which means ETSY is trading at a premium to the group.
We can also see that ETSY currently has a PEG ratio of 3.03. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.5 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 175, which puts it in the bottom 32% 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.
To follow ETSY in the coming trading sessions, be sure to utilize Zacks.com.
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