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In the latest trading session, Etsy (ETSY) closed at $139.54, marking a -1.25% move from the previous day. This change lagged the S&P 500's daily loss of 0.54%. Elsewhere, the Dow lost 0.02%, while the tech-heavy Nasdaq lost 0.12%.
Heading into today, shares of the online crafts marketplace had lost 36.33% over the past month, lagging the Computer and Technology sector's loss of 13.86% and the S&P 500's loss of 7.87% in that time.
Wall Street will be looking for positivity from Etsy as it approaches its next earnings report date. The company is expected to report EPS of $0.74, down 31.48% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $685.68 million, up 11.07% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Etsy. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 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. The Zacks Consensus EPS estimate has moved 1.58% higher within the past month. Etsy is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Etsy is holding a Forward P/E ratio of 41.94. For comparison, its industry has an average Forward P/E of 24.75, which means Etsy is trading at a premium to the group.
Investors should also note that ETSY has a PEG ratio of 1.8 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. ETSY's industry had an average PEG ratio of 2.24 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 208, putting it in the bottom 19% 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.
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