Etsy (ETSY) Stock Falls Amid Market Uptick: What Investors Need to Know
Etsy (ETSY) closed at $68.11 in the latest trading session, marking a -0.58% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.32%. Elsewhere, the Dow saw an upswing of 0.68%, while the tech-heavy Nasdaq appreciated by 0.2%.
Heading into today, shares of the online crafts marketplace had lost 11.18% over the past month, lagging the Computer and Technology sector's gain of 6.04% and the S&P 500's gain of 5.11% in that time.
The investment community will be closely monitoring the performance of Etsy in its forthcoming earnings report. On that day, Etsy is projected to report earnings of $0.49 per share, which would represent a year-over-year decline of 7.55%. Meanwhile, our latest consensus estimate is calling for revenue of $647.95 million, up 1.1% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.60 per share and revenue of $2.86 billion, which would represent changes of +7.44% and +4.04%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Etsy. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.11% lower within the past month. As of now, Etsy holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Etsy is holding a Forward P/E ratio of 26.39. This represents a premium compared to its industry's average Forward P/E of 26.01.
Meanwhile, ETSY's PEG ratio is currently 4.74. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Services industry had an average PEG ratio of 2.33 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 52, positioning it in the top 21% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Etsy, Inc. (ETSY) : Free Stock Analysis Report
