Etsy (ETSY) closed the most recent trading day at $101.97, moving -1.71% from the previous trading session. This change lagged the S&P 500’s 0.91% gain on the day. Meanwhile, the Dow gained 0.85%, and the Nasdaq, a tech-heavy index, added 0.59%.
Coming into today, shares of the online crafts marketplace had gained 22.7% in the past month. In that same time, the Computer and Technology sector gained 8.52%, while the S&P 500 gained 5.26%.
ETSY will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.40, up 185.71% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $327.60 million, up 80.89% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.11 per share and revenue of $1.18 billion, which would represent changes of +46.05% and +44.75%, respectively, from the prior year.
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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 5.56% higher. ETSY is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that ETSY has a Forward P/E ratio of 93.22 right now. This valuation marks a premium compared to its industry’s average Forward P/E of 34.51.
We can also see that ETSY currently has a PEG ratio of 4.16. 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. Internet – Services stocks are, on average, holding a PEG ratio of 2.76 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 156, which puts it in the bottom 39% 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.
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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