Etsy (ETSY - Free Report) closed at $68.30 in the latest trading session, marking a -1.67% move from the prior day. This change lagged the S&P 500's 0.21% gain on the day. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the online crafts marketplace had lost 0.83% in the past month. In that same time, the Computer and Technology sector gained 5.1%, while the S&P 500 gained 2.57%.
Investors will be hoping for strength from ETSY as it approaches its next earnings release. The company is expected to report EPS of $0.14, up 40% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $169.33 million, up 40.04% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.72 per share and revenue of $792.08 million. These totals would mark changes of +18.03% and +31.21%, respectively, from last year.
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. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 3.96% higher. ETSY is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, ETSY currently has a Forward P/E ratio of 95.9. For comparison, its industry has an average Forward P/E of 25.52, which means ETSY is trading at a premium to the group.
Investors should also note that ETSY has a PEG ratio of 4.96 right now. 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 was holding an average PEG ratio of 2.79 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 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.
You can find more information on all of these metrics, and much more, on Zacks.com.