This story originally appeared on Zacks
Ethan Allen (ETD) closed at $26.68 in the last trading session, recording a +0.91% move from the day before. The move outpaced the S&P 500’s daily loss of 0.1%. Elsewhere, the Dow Jones lost 0.47%, while the big tech Nasdaq lost 0.47%.
Heading into the day, shares of the home furnishings company are up 5.55% over the past month, outpacing the retail and wholesale sector’s loss of 0.65% and the S&P 500’s gain of 3.67% in that time.
Investors are hoping for some strength from Ethan Allen as it nears its next earnings release. On that day, Ethan Allen is expected to report earnings of $0.76 per share, which represents 10.14% year-over-year growth. Our latest consensus estimate calls for quarterly revenue of $187.25 million, up 4.71% over the same period last year.
For the full year, our Zacks Consensus estimates expect earnings of $3.10 per share and revenue of $752 million, which would represent changes of +30.8% and +9.75%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Ethan Allen. Recent reviews tend to reflect the latest near-term business trends. With this in mind, we can take the positive rating reviews as a sign of optimism about the company’s business outlook.
Research indicates that these discretionary revisions are directly related to the stock’s near-term price momentum. We developed Zacks Rank to take advantage of this phenomenon. Our system takes these discretionary changes into account and provides a clear and actionable rating model.
Ranging from #1 (strong buy) to #5 (strong sell), the Zacks Rank has a track record of outperforming externally audited, with the #1 stock having achieved a +25% average annual return since 1988. More in a month Past, Zacks Consensus EPS estimate has held steady. Ethan Allen has a Zacks rating of 3 (Hold) at the moment.
In terms of valuation, Ethan Allen is currently trading at a forward P/E ratio of 8.53. For comparison, its industry has an average forward P/E of 12.24, which means that Ethan Allen is trading at a discount to the group.
The retail – home furnishings industry is part of the retail – wholesaling segment. The industry currently has a Zacks Industry Rating of 55, placing it in the top 22% of all 250+ industries.
The Zacks Industry Ranking measures the strength of our individual industry groups by measuring the average Zacks rating of the individual stocks within the groups. Our research shows that industries ranked 50% outperform the bottom half by a factor of 2 to 1.
You can find more information about all of these metrics and more at Zacks.com.
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