Etsy ETSY shares ended the last trading session 7.5% higher at $89.18. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 12.9% gain over the past four weeks.
Etsy is benefiting from accelerating Gross Merchandise Sales growth, improving buyer engagement, stronger mobile app performance and more efficient marketing. Raised 2026 growth and margin outlooks, AI-driven personalization, resilient consumer demand and a new $2 billion share repurchase authorization could sustain its upward momentum.
This online crafts marketplace is expected to post quarterly earnings of $1.31 per share in its upcoming report, which represents a year-over-year change of +107.9%. Revenues are expected to be $665.77 million, down 1.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Etsy, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ETSY going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Etsy is part of the Zacks Internet - Commerce industry. Neighborhood Intelligence NXH, another stock in the same industry, closed the last trading session 5.6% higher at $1.71. NXH has returned -51.5% in the past month.
For Neighborhood Intelligence, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.18. This represents a change of +5.3% from what the company reported a year ago. Neighborhood Intelligence currently has a Zacks Rank of #5 (Strong Sell).
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This article originally published on Zacks Investment Research (zacks.com).