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Ethan Allen (ETD) Gains As Market Dips: What You Should Know

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Ethan Allen (ETD - Free Report) closed at $26.68 in the latest trading session, marking a +0.91% move from the prior day. This move outpaced the S&P 500's daily loss of 0.1%. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq lost 0.47%.

Heading into today, shares of the home furnishings company had gained 5.55% over the past month, outpacing the Retail-Wholesale sector's loss of 0.65% and the S&P 500's gain of 3.67% in that time.

Investors will be hoping for strength from Ethan Allen as it approaches its next earnings release. On that day, Ethan Allen is projected to report earnings of $0.76 per share, which would represent year-over-year growth of 10.14%. Our most recent consensus estimate is calling for quarterly revenue of $187.25 million, up 4.71% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.10 per share and revenue of $752 million, which would represent changes of +30.8% and +9.75%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Ethan Allen. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant. Ethan Allen is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Ethan Allen is currently trading at a Forward P/E ratio of 8.53. For comparison, its industry has an average Forward P/E of 12.24, which means Ethan Allen is trading at a discount to the group.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 22% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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