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

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Ethan Allen (ETD - Free Report) closed the most recent trading day at $26.79, moving -0.48% from the previous trading session. This move lagged the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.14%.

Coming into today, shares of the home furnishings company had gained 7.72% in the past month. In that same time, the Retail-Wholesale sector lost 3.84%, while the S&P 500 gained 0.12%.

Investors will be hoping for strength from Ethan Allen as it approaches its next earnings release. The company is expected to report EPS of $0.76, up 10.14% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $187.25 million, up 4.71% from the year-ago period.

ETD's full-year Zacks Consensus Estimates are calling for earnings of $3.10 per share and revenue of $752 million. These results would represent year-over-year changes of +30.8% and +9.75%, respectively.

Investors should also note any recent changes to analyst estimates for Ethan Allen. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Ethan Allen is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Ethan Allen is currently trading at a Forward P/E ratio of 8.68. This valuation marks a discount compared to its industry's average Forward P/E of 13.41.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% 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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