Ethat Allen (ETD) closed the last trading day at $25.67, moving -1.53% from the previous trading session. That move lagged the S&P 500’s 0.34% daily gain. Meanwhile, the Dow gained 0.4% and the Nasdaq, a technology-heavy index, lost 0.47%.
Prior to today’s trading, shares of the furniture company had lost 1.62% in the past month. This was lower than the 1.91% gain of the retail and wholesale sector and the 3.75% gain of the S&P 500 during this period.
Ethan Allen will be looking to show some strength as his next results release nears. On that day, Ethan Allen is expected to report earnings of $0.74 per share, which would represent 27.59% year-over-year growth. Our most recent consensus estimate calls for quarterly revenue of $197.1 million, up 11.38% from the prior year period.
Looking to the full year, our Zacks consensus estimates suggest analysts are expecting earnings of $3.28 per share and revenue of $788.35 million. These totals would mark changes of +38.4% and +15.06%, respectively, from last year.
Any recent changes in analyst estimates for Ethan Allen should also be noted by investors. Recent revisions tend to reflect the latest short-term trading trends. Therefore, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe that these estimate revisions are directly related to the team’s close stock movements. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes into account these estimation changes and provides a clear and actionable scoring model.
The Zacks ranking system ranges from #1 (strong buy) to #5 (strong sell). It has a remarkable, externally audited track record of success with #1 stocks delivering an average annual return of +25% since 1988. Over the past 30 days, our consensus EPS projection has remained stagnant. Ethan Allen is currently a Zacks Rank #3 (Hold).
Looking at his valuation, Ethan Allen holds a Forward P/E ratio of 7.96. For comparison, his industry has an average Forward P/E of 9.32, which means Ethan Allen is trading at a discount to the group.
The Retail – Furniture industry is part of the Retail – Wholesale sector. This group has a Zacks industry ranking of 34, which places it in the top 14% of over 250 industries.
The Zacks Industry Ranking assesses the strength of our industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to track all of these stock movement metrics, and more, in future 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.