Etsy (ETSY) Outpaces Stock Market Gains: What You Should Know
Etsy (ETSY) closed the most recent trading day at $223.23, moving +0.95% from the previous trading session. This change outpaced the S&P 500's 0.65% gain on the day. At the same time, the Dow added 0.53%, and the tech-heavy Nasdaq gained 1.05%.
Coming into today, shares of the online crafts marketplace had lost 2.17% in the past month. In that same time, the Computer and Technology sector lost 6.78%, while the S&P 500 gained 0.36%.
ETSY will be looking to display strength as it nears its next earnings release. On that day, ETSY is projected to report earnings of $0.82 per share, which would represent year-over-year growth of 720%. Meanwhile, our latest consensus estimate is calling for revenue of $532.14 million, up 133.34% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.77 per share and revenue of $2.12 billion, which would represent changes of +2.97% and +22.85%, respectively, from the prior year.
Any recent changes to analyst estimates for ETSY should also be noted by investors. 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.
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. Within the past 30 days, our consensus EPS projection has moved 42.43% higher. ETSY is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, ETSY currently has a Forward P/E ratio of 79.8. This represents a premium compared to its industry's average Forward P/E of 29.78.
We can also see that ETSY currently has a PEG ratio of 3.16. 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 2.38 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 152, putting it in the bottom 41% 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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