Etsy (ETSY - Free Report) closed the most recent trading day at $52.07, moving +1.42% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.02%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 0.21%.
Prior to today's trading, shares of the online crafts marketplace had lost 6.74% over the past month. This has lagged the Computer and Technology sector's loss of 1.41% and the S&P 500's loss of 1.4% in that time.
ETSY will be looking to display strength as it nears its next earnings release, which is expected to be February 26, 2019. In that report, analysts expect ETSY to post earnings of $0.33 per share. This would mark year-over-year growth of 120%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $194.36 million, up 42.63% from the year-ago period.
Investors should also note any recent changes to analyst estimates for ETSY. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate remained stagnant within the past month. ETSY is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note ETSY's current valuation metrics, including its Forward P/E ratio of 48.09. This represents a premium compared to its industry's average Forward P/E of 26.81.
Investors should also note that ETSY has a PEG ratio of 3.21 right now. 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. The Internet - Services industry currently had an average PEG ratio of 2.18 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 160, putting it in the bottom 38% 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.
To follow ETSY in the coming trading sessions, be sure to utilize Zacks.com.