Why Etsy (ETSY) Outpaced the Stock Market Today
In the latest market close, Etsy (ETSY) reached $68.72, with a +1.07% movement compared to the previous day. This change outpaced the S&P 500's 0.11% gain on the day. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 0.12%.
The online crafts marketplace's shares have seen a decrease of 4.24% over the last month, not keeping up with the Computer and Technology sector's gain of 3.59% and the S&P 500's gain of 3.55%.
Analysts and investors alike will be keeping a close eye on the performance of Etsy in its upcoming earnings disclosure. In that report, analysts expect Etsy to post earnings of $0.49 per share. This would mark a year-over-year decline of 7.55%. In the meantime, our current consensus estimate forecasts the revenue to be $647.95 million, indicating a 1.1% growth compared to the corresponding quarter of the prior year.
ETSY's full-year Zacks Consensus Estimates are calling for earnings of $2.60 per share and revenue of $2.86 billion. These results would represent year-over-year changes of +7.44% and +4.04%, respectively.
Investors might also notice recent changes to analyst estimates for Etsy. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.61% decrease. Etsy currently has a Zacks Rank of #3 (Hold).
Investors should also note Etsy's current valuation metrics, including its Forward P/E ratio of 26.19. This represents a premium compared to its industry's average Forward P/E of 25.97.
It is also worth noting that ETSY currently has a PEG ratio of 4.7. 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. The Internet - Services was holding an average PEG ratio of 2.22 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 62, this industry ranks in the top 25% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ETSY in the coming trading sessions, be sure to utilize Zacks.com.
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Etsy, Inc. (ETSY) : Free Stock Analysis Report
