In the latest trading session, Etsy (ETSY - Free Report) closed at $49.36, marking a +1.13% move from the previous day. This move outpaced the S&P 500's daily gain of 0.73%. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 1.34%.
Coming into today, shares of the online crafts marketplace had gained 8.01% in the past month. In that same time, the Computer and Technology sector gained 2.97%, while the S&P 500 0%.
Wall Street will be looking for positivity from ETSY as it approaches its next earnings report date. In that report, analysts expect ETSY to post earnings of $0.17 per share. This would mark a year-over-year decline of 46.88%. Our most recent consensus estimate is calling for quarterly revenue of $264.97 million, up 32.47% 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.16% higher. ETSY currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that ETSY has a Forward P/E ratio of 61.2 right now. For comparison, its industry has an average Forward P/E of 26.41, which means ETSY is trading at a premium to the group.
Meanwhile, ETSY's PEG ratio is currently 2.99. 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. ETSY's industry 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 industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 33% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.