Etsy (ETSY) closed at $55.28 in the latest trading session, marking a -0.11% move from the prior day. This change lagged the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 0.16%.
Prior to today's trading, shares of the online crafts marketplace had gained 9.13% over the past month. This has outpaced the Computer and Technology sector's loss of 4.01% and the S&P 500's loss of 4.99% in that time.
Investors will be hoping for strength from ETSY as it approaches its next earnings release, which is expected to be February 26, 2019. In that report, analysts expect ETSY to post earnings of $0.33 per share. This would mark year-over-year growth of 120%. Our most recent consensus estimate is calling for quarterly revenue of $194.36 million, up 42.63% from the year-ago period.
ETSY's full-year Zacks Consensus Estimates are calling for earnings of $0.84 per share and revenue of $598.74 million. These results would represent year-over-year changes of +121.05% and +35.7%, respectively.
Any recent changes to analyst estimates for ETSY should also be noted by investors. Recent revisions tend to reflect the latest 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. 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. ETSY is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, ETSY is currently trading at a Forward P/E ratio of 66.14. Its industry sports an average Forward P/E of 27.77, so we one might conclude that ETSY is trading at a premium comparatively.
We can also see that ETSY currently has a PEG ratio of 4.41. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 2.16 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 107, putting it in the top 42% 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.