Etsy (ETSY) Dips More Than Broader Market: What You Should Know

In the latest trading session, Etsy (ETSY) closed at $66.26, marking a -1.72% move from the previous day. This change lagged the S&P 500's 0.65% loss on the day. On the other hand, the Dow registered a loss of 0.49%, and the technology-centric Nasdaq decreased by 0.96%.

Shares of the online crafts marketplace have depreciated by 13.3% over the course of the past month, underperforming the Computer and Technology sector's gain of 2.19% and the S&P 500's gain of 3.27%.

Analysts and investors alike will be keeping a close eye on the performance of Etsy in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.49, marking a 7.55% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $648.02 million, reflecting a 1.11% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $2.61 per share and a revenue of $2.86 billion, demonstrating changes of +7.85% and +4.02%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Etsy. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.53% decrease. At present, Etsy boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Etsy is presently trading at a Forward P/E ratio of 25.81. This expresses a premium compared to the average Forward P/E of 24.01 of its industry.

It's also important to note that ETSY currently trades at a PEG ratio of 4.63. 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. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 2.21.

The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 88, positioning it in the top 35% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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