In the latest trading session, Etsy (ETSY - Free Report) closed at $43.12, marking a -1.28% move from the previous day. This move was narrower than the S&P 500's daily loss of 2.71%. Meanwhile, the Dow lost 2.91%, and the Nasdaq, a tech-heavy index, lost 2.21%.
Coming into today, shares of the online crafts marketplace had lost 0.77% in the past month. In that same time, the Computer and Technology sector lost 6.7%, while the S&P 500 lost 8.68%.
Wall Street will be looking for positivity from ETSY as it approaches its next earnings report date. This is expected to be February 26, 2019. The company is expected to report EPS of $0.33, up 120% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $194.36 million, up 42.63% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.84 per share and revenue of $598.28 million. These totals would mark changes of +121.05% and +35.59%, respectively, from last year.
Investors might also notice 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.
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 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. ETSY currently has a Zacks Rank of #2 (Buy).
In terms of valuation, ETSY is currently trading at a Forward P/E ratio of 52.21. This represents a premium compared to its industry's average Forward P/E of 25.23.
Also, we should mention that ETSY has a PEG ratio of 3.48. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.74 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 92, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.