In the latest trading session, Etsy (ETSY) closed at $104.07, marking a +0.1% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.71%. Elsewhere, the Dow lost 1.7%, while the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the online crafts marketplace had gained 0.22% over the past month, outpacing the Computer and Technology sector's loss of 12.12% and the S&P 500's loss of 8.68% in that time.
Etsy will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.37, down 40.32% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $560.44 million, up 5.26% from the year-ago period.
ETSY's full-year Zacks Consensus Estimates are calling for earnings of $2.18 per share and revenue of $2.47 billion. These results would represent year-over-year changes of -35.88% and +6.02%, respectively.
Investors might also notice recent changes to analyst estimates for Etsy. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.27% lower. Etsy is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Etsy is holding a Forward P/E ratio of 47.78. This represents a premium compared to its industry's average Forward P/E of 20.9.
Also, we should mention that ETSY has a PEG ratio of 4.85. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.65 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 64, which puts it in the top 26% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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