In the latest trading session, Etsy (ETSY) closed at $141.77, marking a -0.88% move from the previous day. This move was narrower than the S&P 500’s daily loss of 1.9%. Elsewhere, the Dow lost 1.43%, while the tech-heavy Nasdaq added 0.06%.
– Zacks
Coming into today, shares of the online crafts marketplace had lost 14.25% in the past month. In that same time, the Computer and Technology sector lost 4.42%, while the S&P 500 lost 3.39%.
Etsy will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.76, down 29.63% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $686.31 million, up 11.17% 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 a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 3.06% higher within the past month. Etsy is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Etsy has a Forward P/E ratio of 41.93 right now. This valuation marks a premium compared to its industry’s average Forward P/E of 25.96.
Investors should also note that ETSY has a PEG ratio of 1.4 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 industry currently had an average PEG ratio of 2.55 as of yesterday’s close.
The Internet – Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 206, putting it in the bottom 20% 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.
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Etsy, Inc. (ETSY): Free Stock Analysis Report
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