Etsy (ETSY) closed the most recent trading day at $167.37, moving +0.79% from the previous trading session. This change outpaced the S&P 500's 0.54% loss on the day.
Coming into today, shares of the online crafts marketplace had lost 0.71% in the past month. In that same time, the Computer and Technology sector gained 6.51%, while the S&P 500 gained 1.91%.
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 $0.59, down 21.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $531.06 million, up 23.87% from the prior-year quarter.
ETSY's full-year Zacks Consensus Estimates are calling for earnings of $2.96 per share and revenue of $2.27 billion. These results would represent year-over-year changes of +10.04% and +31.65%, respectively.
Investors should also note any recent changes to analyst estimates for ETSY. Recent revisions tend to reflect the latest near-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. 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. Within the past 30 days, our consensus EPS projection has moved 1.8% higher. ETSY currently has a Zacks Rank of #3 (Hold).
Investors should also note ETSY's current valuation metrics, including its Forward P/E ratio of 56.1. Its industry sports an average Forward P/E of 28.48, so we one might conclude that ETSY is trading at a premium comparatively.
Meanwhile, ETSY's PEG ratio is currently 2.89. 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 2.03 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Etsy, Inc. (ETSY) : Free Stock Analysis Report
To read this article on Zacks.com click here.