Etsy (ETSY) Stock Dips While Market Gains: Key Facts
The most recent trading session ended with Etsy (ETSY) standing at $68.40, reflecting a -0.31% shift from the previouse trading day's closing. This change lagged the S&P 500's 1.03% gain on the day. Elsewhere, the Dow saw an upswing of 0.34%, while the tech-heavy Nasdaq appreciated by 1.51%.
Shares of the online crafts marketplace have depreciated by 6.35% over the course of the past month, underperforming the Computer and Technology sector's gain of 2.52% and the S&P 500's gain of 3.21%.
The investment community will be paying close attention to the earnings performance of Etsy in its upcoming release. The company is expected to report EPS of $0.49, down 7.55% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $648.02 million, reflecting a 1.11% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $2.61 per share and a revenue of $2.86 billion, demonstrating changes of +7.85% and +4.02%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Etsy. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 3.53% lower. Etsy currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Etsy is currently trading at a Forward P/E ratio of 26.27. This expresses a discount compared to the average Forward P/E of 27.72 of its industry.
Meanwhile, ETSY's PEG ratio is currently 4.71. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Services industry stood at 2.23 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 160, finds itself in the bottom 37% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Etsy, Inc. (ETSY) : Free Stock Analysis Report
