Etsy (ETSY - Free Report) closed at $150.67 in the latest trading session, marking a +0.47% move from the prior day. This move outpaced the S&P 500's daily loss of 0.15%. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq lost 0.47%.
Prior to today's trading, shares of the online crafts marketplace had gained 37.84% over the past month. This has outpaced the Computer and Technology sector's gain of 6.24% and the S&P 500's gain of 3.19% in that time.
Wall Street will be looking for positivity from ETSY as it approaches its next earnings report date. This is expected to be October 28, 2020. On that day, ETSY is projected to report earnings of $0.58 per share, which would represent year-over-year growth of 383.33%. Our most recent consensus estimate is calling for quarterly revenue of $417.61 million, up 110.96% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.07 per share and revenue of $1.51 billion, which would represent changes of +172.37% and +85.1%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for ETSY. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.14% higher within the past month. ETSY is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, ETSY is holding a Forward P/E ratio of 72.39. This represents a premium compared to its industry's average Forward P/E of 37.34.
Investors should also note that ETSY has a PEG ratio of 2.54 right now. 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. The Internet - Services was holding an average PEG ratio of 2.15 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.