In the latest trading session, Etsy (ETSY) closed at $167.15, marking a -0.09% move from the previous day. This move lagged the S&P 500's daily gain of 0.47%.
Prior to today's trading, shares of the online crafts marketplace had gained 5% over the past month. This has outpaced the Computer and Technology sector's gain of 2.06% and the S&P 500's loss of 0.12% in that time.
Investors will be hoping for strength from ETSY as it approaches its next earnings release. The company is expected to report EPS of $0.58, down 22.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $530.91 million, up 23.83% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.92 per share and revenue of $2.26 billion. These totals would mark changes of +8.55% and +31.11%, respectively, from last year.
It is also important to note the 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 has moved 0.27% higher. ETSY is currently a Zacks Rank #3 (Hold).
In terms of valuation, ETSY is currently trading at a Forward P/E ratio of 57.38. Its industry sports an average Forward P/E of 29.21, so we one might conclude that ETSY is trading at a premium comparatively.
It is also worth noting that ETSY currently has a PEG ratio of 2.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ETSY's industry had an average PEG ratio of 1.9 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 169, putting it in the bottom 34% 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.
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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