Etsy (ETSY - Free Report) closed the most recent trading day at $53.15, making no change from the previous trading session. This change lagged the S&P 500's 0.07% gain on the day. Elsewhere, the Dow lost 0.21%, while the tech-heavy Nasdaq added 0.13%.
Prior to today's trading, shares of the online crafts marketplace had gained 3.53% over the past month. This has lagged the Computer and Technology sector's gain of 7.08% and the S&P 500's gain of 5.36% in that time.
Investors will be hoping for strength from ETSY as it approaches its next earnings release, which is expected to be February 25, 2019. On that day, ETSY is projected to report earnings of $0.31 per share, which would represent year-over-year growth of 106.67%. Meanwhile, our latest consensus estimate is calling for revenue of $194.88 million, up 43.01% from the prior-year quarter.
Investors might also notice 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ETSY is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that ETSY has a Forward P/E ratio of 50.81 right now. Its industry sports an average Forward P/E of 26.88, so we one might conclude that ETSY is trading at a premium comparatively.
Investors should also note that ETSY has a PEG ratio of 3.39 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Services stocks are, on average, holding a PEG ratio of 2.2 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 60, putting it in the top 24% 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.