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Etsy (ETSY) Gains But Lags Market: What You Should Know
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Etsy (ETSY - Free Report) closed the most recent trading day at $120.59, moving +0.86% from the previous trading session. This change lagged the S&P 500's 2.28% gain on the day. Elsewhere, the Dow gained 2.13%, while the tech-heavy Nasdaq added 5.02%.
Heading into today, shares of the online crafts marketplace had lost 11.11% over the past month, lagging the Computer and Technology sector's loss of 8.41% and the S&P 500's loss of 4.61% in that time.
Wall Street will be looking for positivity from Etsy as it approaches its next earnings report date. On that day, Etsy is projected to report earnings of $0.80 per share, which would represent a year-over-year decline of 27.93%. Meanwhile, our latest consensus estimate is calling for revenue of $750.01 million, up 4.58% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Etsy. These revisions help to show the ever-changing nature of near-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 remained stagnant. 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 42.62. This valuation marks a premium compared to its industry's average Forward P/E of 19.87.
It is also worth noting that ETSY currently has a PEG ratio of 5.15. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services was holding an average PEG ratio of 1.56 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 40% 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.
To follow ETSY in the coming trading sessions, be sure to utilize Zacks.com.
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Etsy (ETSY) Gains But Lags Market: What You Should Know
Etsy (ETSY - Free Report) closed the most recent trading day at $120.59, moving +0.86% from the previous trading session. This change lagged the S&P 500's 2.28% gain on the day. Elsewhere, the Dow gained 2.13%, while the tech-heavy Nasdaq added 5.02%.
Heading into today, shares of the online crafts marketplace had lost 11.11% over the past month, lagging the Computer and Technology sector's loss of 8.41% and the S&P 500's loss of 4.61% in that time.
Wall Street will be looking for positivity from Etsy as it approaches its next earnings report date. On that day, Etsy is projected to report earnings of $0.80 per share, which would represent a year-over-year decline of 27.93%. Meanwhile, our latest consensus estimate is calling for revenue of $750.01 million, up 4.58% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Etsy. These revisions help to show the ever-changing nature of near-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 remained stagnant. 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 42.62. This valuation marks a premium compared to its industry's average Forward P/E of 19.87.
It is also worth noting that ETSY currently has a PEG ratio of 5.15. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services was holding an average PEG ratio of 1.56 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 40% 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.
To follow ETSY in the coming trading sessions, be sure to utilize Zacks.com.