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Etsy (ETSY) Stock Dips While Market Gains: Key Facts

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Etsy (ETSY - Free Report) closed at $62.72 in the latest trading session, marking a -0.22% move from the prior day. The stock's change was less than the S&P 500's daily gain of 1.18%. Elsewhere, the Dow saw an upswing of 0.87%, while the tech-heavy Nasdaq appreciated by 1.6%.

The online crafts marketplace's stock has dropped by 9.02% in the past month, falling short of the Computer and Technology sector's loss of 5.27% and the S&P 500's loss of 5.17%.

The investment community will be closely monitoring the performance of Etsy in its forthcoming earnings report. The company's upcoming EPS is projected at $0.50, signifying a 13.79% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $631.27 million, indicating a 6.19% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.35 per share and revenue of $2.75 billion, which would represent changes of -13.6% and +7.28%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Etsy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

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 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Etsy boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Etsy is currently exchanging hands at a Forward P/E ratio of 26.76. This denotes no noticeable deviation relative to the industry's average Forward P/E of 26.76.

We can also see that ETSY currently has a PEG ratio of 3.71. 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. The Internet - Services industry had an average PEG ratio of 1.83 as trading concluded yesterday.

The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 74, finds itself in the top 30% echelons 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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