Etsy (ETSY) Outpaces Stock Market Gains: What You Should Know
Etsy (ETSY) closed at $51.44 in the latest trading session, marking a +1.06% move from the prior day. This move outpaced the S&P 500's daily gain of 0.39%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.34%.
Prior to today's trading, shares of the online crafts marketplace had gained 15.84% over the past month. This has outpaced the Computer and Technology sector's gain of 6.58% and the S&P 500's gain of 4.73% in that time.
Wall Street will be looking for positivity from ETSY as it approaches its next earnings report date. The company is expected to report EPS of $0.17, down 46.88% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $264.97 million, up 32.47% from the year-ago period.
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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ETSY is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, ETSY is holding a Forward P/E ratio of 63.92. This valuation marks a premium compared to its industry's average Forward P/E of 26.52.
Investors should also note that ETSY has a PEG ratio of 3.12 right now. 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 industry currently had an average PEG ratio of 2.62 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 29% 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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