In the latest trading session, Etsy (ETSY) closed at $219.37, marking a -0.55% move from the previous day. This change lagged the S&P 500's daily gain of 0.95%.
Prior to today's trading, shares of the online crafts marketplace had gained 9.53% over the past month. This has outpaced the Computer and Technology sector's gain of 0.28% and the S&P 500's loss of 1.87% in that time.
Wall Street will be looking for positivity from ETSY as it approaches its next earnings report date. On that day, ETSY is projected to report earnings of $0.50 per share, which would represent a year-over-year decline of 28.57%. Our most recent consensus estimate is calling for quarterly revenue of $517.74 million, up 14.68% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.94 per share and revenue of $2.27 billion, which would represent changes of +9.29% and +31.39%, respectively, from the prior year.
Any recent changes to analyst estimates for ETSY should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 holding a Zacks Rank of #3 (Hold) right now.
Investors should also note ETSY's current valuation metrics, including its Forward P/E ratio of 74.99. This represents a premium compared to its industry's average Forward P/E of 27.42.
It is also worth noting that ETSY currently has a PEG ratio of 3.81. 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. The Internet - Services was holding an average PEG ratio of 3.93 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 169, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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