Etsy (ETSY - Free Report) closed at $108.80 in the latest trading session, marking a -1.99% move from the prior day. This change lagged the S&P 500's daily loss of 0.46%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq lost 1.25%.
Heading into today, shares of the online crafts marketplace had lost 16.54% over the past month, lagging the Computer and Technology sector's gain of 2.23% and the S&P 500's gain of 1% in that time.
ETSY will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.58, up 383.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $414.86 million, up 109.58% from the year-ago period.
ETSY's full-year Zacks Consensus Estimates are calling for earnings of $2.07 per share and revenue of $1.51 billion. These results would represent year-over-year changes of +172.37% and +84.95%, respectively.
Any recent changes to analyst estimates for ETSY should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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 past month, the Zacks Consensus EPS estimate has moved 0.64% higher. ETSY is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, ETSY is currently trading at a Forward P/E ratio of 53.67. This represents a premium compared to its industry's average Forward P/E of 37.71.
We can also see that ETSY currently has a PEG ratio of 1.88. 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 2.1 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 178, which puts it in the bottom 30% 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.