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Etsy (ETSY) Gains But Lags Market: What You Should Know
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Etsy (ETSY - Free Report) closed the most recent trading day at $103.24, moving +1.15% from the previous trading session. This move lagged the S&P 500's daily gain of 1.63%. Meanwhile, the Dow gained 1.07%, and the Nasdaq, a tech-heavy index, added 0.3%.
Prior to today's trading, shares of the online crafts marketplace had gained 8.24% over the past month. This has outpaced the Computer and Technology sector's gain of 0.92% and the S&P 500's gain of 2.94% in that time.
Investors will be hoping for strength from Etsy as it approaches its next earnings release, which is expected to be November 2, 2022. On that day, Etsy is projected to report earnings of $0.37 per share, which would represent a year-over-year decline of 40.32%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $559.54 million, up 5.09% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.18 per share and revenue of $2.47 billion. These totals would mark changes of -35.88% and +5.96%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Etsy. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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 0.06% lower. Etsy is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Etsy is currently trading at a Forward P/E ratio of 46.93. For comparison, its industry has an average Forward P/E of 20.19, which means Etsy is trading at a premium to the group.
Meanwhile, ETSY's PEG ratio is currently 5.81. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.8 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 21% 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.
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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Etsy (ETSY) Gains But Lags Market: What You Should Know
Etsy (ETSY - Free Report) closed the most recent trading day at $103.24, moving +1.15% from the previous trading session. This move lagged the S&P 500's daily gain of 1.63%. Meanwhile, the Dow gained 1.07%, and the Nasdaq, a tech-heavy index, added 0.3%.
Prior to today's trading, shares of the online crafts marketplace had gained 8.24% over the past month. This has outpaced the Computer and Technology sector's gain of 0.92% and the S&P 500's gain of 2.94% in that time.
Investors will be hoping for strength from Etsy as it approaches its next earnings release, which is expected to be November 2, 2022. On that day, Etsy is projected to report earnings of $0.37 per share, which would represent a year-over-year decline of 40.32%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $559.54 million, up 5.09% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.18 per share and revenue of $2.47 billion. These totals would mark changes of -35.88% and +5.96%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Etsy. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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 0.06% lower. Etsy is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Etsy is currently trading at a Forward P/E ratio of 46.93. For comparison, its industry has an average Forward P/E of 20.19, which means Etsy is trading at a premium to the group.
Meanwhile, ETSY's PEG ratio is currently 5.81. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.8 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 21% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.