Etsy (ETSY - Free Report) closed the most recent trading day at $55.64, moving +1.92% from the previous trading session. This change outpaced the S&P 500's 1.32% gain on the day. At the same time, the Dow added 1.38%, and the tech-heavy Nasdaq gained 1.74%.
Prior to today's trading, shares of the online crafts marketplace had gained 13.12% over the past month. This has outpaced the Computer and Technology sector's gain of 2.64% and the S&P 500's gain of 4.16% in that time.
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. In that report, analysts expect ETSY to post earnings of $0.33 per share. This would mark year-over-year growth of 120%. Meanwhile, our latest consensus estimate is calling for revenue of $194.36 million, up 42.63% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for ETSY. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. ETSY is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note ETSY's current valuation metrics, including its Forward P/E ratio of 51.14. For comparison, its industry has an average Forward P/E of 27.49, which means ETSY is trading at a premium to the group.
Meanwhile, ETSY's PEG ratio is currently 3.41. 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. ETSY's industry had an average PEG ratio of 2.27 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 104, putting it in the top 41% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.