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Etsy (ETSY) Stock Moves -0.31%: What You Should Know

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Etsy (ETSY - Free Report) closed at $182.30 in the latest trading session, marking a -0.31% move from the prior day. This change was narrower than the S&P 500's daily loss of 0.33%.

Heading into today, shares of the online crafts marketplace had gained 9.25% over the past month, outpacing the Computer and Technology sector's gain of 3.4% and the S&P 500's gain of 2.89% in that time.

Wall Street will be looking for positivity from ETSY as it approaches its next earnings report date. In that report, analysts expect ETSY to post earnings of $0.59 per share. This would mark a year-over-year decline of 21.33%. Meanwhile, our latest consensus estimate is calling for revenue of $531.78 million, up 24.03% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.94 per share and revenue of $2.28 billion. These totals would mark changes of +9.29% and +32.17%, respectively, from last year.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.59% lower. ETSY is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, ETSY currently has a Forward P/E ratio of 62.14. Its industry sports an average Forward P/E of 31.43, so we one might conclude that ETSY is trading at a premium comparatively.

Investors should also note that ETSY has a PEG ratio of 3.2 right now. 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 industry currently had an average PEG ratio of 2.68 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 227, putting it in the bottom 11% 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.

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