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Etsy (ETSY) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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Etsy (ETSY - Free Report) ended the recent trading session at $62.86, demonstrating a -1.38% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.13%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 0.12%.
Shares of the online crafts marketplace witnessed a loss of 12.37% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 5.08% and the S&P 500's loss of 5.53%.
The upcoming earnings release of Etsy will be of great interest to investors. The company is forecasted to report an EPS of $0.50, showcasing a 13.79% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $631.27 million, indicating a 6.19% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $2.35 per share and a revenue of $2.75 billion, demonstrating changes of -13.6% and +7.28%, respectively, from the preceding year.
Investors should also take note of any recent adjustments 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Etsy holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Etsy has a Forward P/E ratio of 27.14 right now. For comparison, its industry has an average Forward P/E of 27.14, which means Etsy is trading at no noticeable deviation to the group.
One should further note that ETSY currently holds a PEG ratio of 3.76. 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 1.85 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 64, positioning it in the top 26% 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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Etsy (ETSY) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Etsy (ETSY - Free Report) ended the recent trading session at $62.86, demonstrating a -1.38% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.13%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, lost 0.12%.
Shares of the online crafts marketplace witnessed a loss of 12.37% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 5.08% and the S&P 500's loss of 5.53%.
The upcoming earnings release of Etsy will be of great interest to investors. The company is forecasted to report an EPS of $0.50, showcasing a 13.79% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $631.27 million, indicating a 6.19% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $2.35 per share and a revenue of $2.75 billion, demonstrating changes of -13.6% and +7.28%, respectively, from the preceding year.
Investors should also take note of any recent adjustments 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Etsy holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Etsy has a Forward P/E ratio of 27.14 right now. For comparison, its industry has an average Forward P/E of 27.14, which means Etsy is trading at no noticeable deviation to the group.
One should further note that ETSY currently holds a PEG ratio of 3.76. 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 1.85 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 64, positioning it in the top 26% 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.