Back to top

Image: Bigstock

Ethan Allen (ETD) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

Ethan Allen (ETD - Free Report) closed the most recent trading day at $24.37, moving +0.45% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.89%. Meanwhile, the Dow lost 1.3%, and the Nasdaq, a tech-heavy index, lost 0.17%.

Heading into today, shares of the home furnishings company had lost 4.68% over the past month, outpacing the Retail-Wholesale sector's loss of 6.12% and lagging the S&P 500's loss of 1.79% in that time.

Investors will be hoping for strength from Ethan Allen as it approaches its next earnings release, which is expected to be January 27, 2022. The company is expected to report EPS of $0.76, up 10.14% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $187.25 million, up 4.71% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.10 per share and revenue of $752 million, which would represent changes of +30.8% and +9.75%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Ethan Allen. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant within the past month. Ethan Allen is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Ethan Allen has a Forward P/E ratio of 7.83 right now. Its industry sports an average Forward P/E of 11.96, so we one might conclude that Ethan Allen is trading at a discount comparatively.

The Retail - Home Furnishings industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Ethan Allen Interiors Inc. (ETD) - free report >>

Published in