Etsy (ETSY) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Etsy (ETSY) closed at $163.70, marking a -1.86% move from the previous day. This change lagged the S&P 500's 0.08% gain on the day. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq lost 4.81%.
Coming into today, shares of the online crafts marketplace had lost 26.13% in the past month. In that same time, the Computer and Technology sector lost 2.99%, while the S&P 500 gained 0.64%.
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 $0.73, down 32.41% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $684.18 million, up 10.82% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Etsy. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.19% lower within the past month. Etsy is currently a Zacks Rank #4 (Sell).
Digging into valuation, Etsy currently has a Forward P/E ratio of 49.46. This valuation marks a premium compared to its industry's average Forward P/E of 24.55.
It is also worth noting that ETSY currently has a PEG ratio of 2.4. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ETSY's industry had an average PEG ratio of 2.84 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 206, which puts it in the bottom 20% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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