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Etsy (ETSY) Gains But Lags Market: What You Should Know
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In the latest trading session, Etsy (ETSY - Free Report) closed at $231.69, marking a +0.25% move from the previous day. The stock lagged the S&P 500's daily gain of 0.74%. Elsewhere, the Dow gained 0.76%, while the tech-heavy Nasdaq added 0.95%.
Coming into today, shares of the online crafts marketplace had gained 35.32% in the past month. In that same time, the Computer and Technology sector gained 9.21%, while the S&P 500 gained 4.41%.
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 132% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $514.72 million, up 90.64% from the year-ago period.
It is also important to note the recent changes to analyst estimates for ETSY. Recent revisions tend to reflect the latest 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.9% lower. ETSY currently has a Zacks Rank of #3 (Hold).
In terms of valuation, ETSY is currently trading at a Forward P/E ratio of 118.79. Its industry sports an average Forward P/E of 38.39, so we one might conclude that ETSY is trading at a premium comparatively.
Also, we should mention that ETSY has a PEG ratio of 4.07. 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 2.96 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 118, which puts it in the top 47% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Etsy (ETSY) Gains But Lags Market: What You Should Know
In the latest trading session, Etsy (ETSY - Free Report) closed at $231.69, marking a +0.25% move from the previous day. The stock lagged the S&P 500's daily gain of 0.74%. Elsewhere, the Dow gained 0.76%, while the tech-heavy Nasdaq added 0.95%.
Coming into today, shares of the online crafts marketplace had gained 35.32% in the past month. In that same time, the Computer and Technology sector gained 9.21%, while the S&P 500 gained 4.41%.
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 132% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $514.72 million, up 90.64% from the year-ago period.
It is also important to note the recent changes to analyst estimates for ETSY. Recent revisions tend to reflect the latest 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.9% lower. ETSY currently has a Zacks Rank of #3 (Hold).
In terms of valuation, ETSY is currently trading at a Forward P/E ratio of 118.79. Its industry sports an average Forward P/E of 38.39, so we one might conclude that ETSY is trading at a premium comparatively.
Also, we should mention that ETSY has a PEG ratio of 4.07. 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 2.96 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 118, which puts it in the top 47% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.