Etsy (ETSY - Free Report) closed at $54.65 in the latest trading session, marking a +0.85% move from the prior day. The stock lagged the S&P 500's daily gain of 0.86%. Meanwhile, the Dow lost 0.06%, and the Nasdaq, a tech-heavy index, added 1.37%.
Coming into today, shares of the online crafts marketplace had gained 15.3% in the past month. In that same time, the Computer and Technology sector gained 6.94%, while the S&P 500 gained 8.11%.
ETSY will be looking to display strength as it nears its next earnings release, which is expected to be February 25, 2019. The company is expected to report EPS of $0.33, up 120% from the prior-year quarter. 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 recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. ETSY is currently a Zacks Rank #2 (Buy).
Looking at its valuation, ETSY is holding a Forward P/E ratio of 50.76. This valuation marks a premium compared to its industry's average Forward P/E of 29.05.
We can also see that ETSY currently has a PEG ratio of 3.38. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services industry currently had an average PEG ratio of 2.26 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 89, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.