News Image

Exploring the Growth Potential of NASDAQ:ETSY as It Nears a Breakout.

By Mill Chart

Last update: May 16, 2024

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if ETSY INC (NASDAQ:ETSY) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted ETSY INC showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Growth Insights: NASDAQ:ETSY

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:ETSY has received a 8 out of 10:

  • The Earnings Per Share has grown by an impressive 137.87% over the past year.
  • The Earnings Per Share has been growing by 30.26% on average over the past years. This is a very strong growth
  • The Revenue has been growing by 35.41% on average over the past years. This is a very strong growth!
  • The Earnings Per Share is expected to grow by 31.85% on average over the next years. This is a very strong growth
  • The Revenue is expected to grow by 8.22% on average over the next years. This is quite good.

Evaluating Health: NASDAQ:ETSY

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:ETSY, the assigned 7 reflects its health status:

  • Looking at the Altman-Z score, with a value of 2.65, ETSY is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
  • The Debt to FCF ratio of ETSY is 3.53, which is a good value as it means it would take ETSY, 3.53 years of fcf income to pay off all of its debts.
  • ETSY has a Debt to FCF ratio of 3.53. This is in the better half of the industry: ETSY outperforms 63.64% of its industry peers.
  • A Current Ratio of 2.49 indicates that ETSY has no problem at all paying its short term obligations.
  • With an excellent Current ratio value of 2.49, ETSY belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
  • A Quick Ratio of 2.49 indicates that ETSY has no problem at all paying its short term obligations.
  • ETSY's Quick ratio of 2.49 is amongst the best of the industry. ETSY outperforms 93.94% of its industry peers.

Understanding NASDAQ:ETSY's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:ETSY was assigned a score of 8 for profitability:

  • ETSY's Return On Assets of 11.85% is amongst the best of the industry. ETSY outperforms 87.88% of its industry peers.
  • ETSY has a better Return On Invested Capital (14.90%) than 84.85% of its industry peers.
  • ETSY had an Average Return On Invested Capital over the past 3 years of 13.89%. This is above the industry average of 11.25%.
  • The last Return On Invested Capital (14.90%) for ETSY is above the 3 year average (13.89%), which is a sign of increasing profitability.
  • ETSY has a better Profit Margin (10.75%) than 87.88% of its industry peers.
  • ETSY has a better Operating Margin (13.24%) than 87.88% of its industry peers.
  • ETSY's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 70.41%, ETSY belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.

How do we evaluate the setup for NASDAQ:ETSY?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:ETSY scores a 7 out of 10:

ETSY has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 66.61. Right above this resistance zone may be a good entry point.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Our latest full fundamental report of ETSY contains the most current fundamental analsysis.

Check the latest full technical report of ETSY for a complete technical analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

Back

ETSY INC

NASDAQ:ETSY (5/29/2024, 7:00:59 PM)

Premarket: 60.8 0 (0%)

60.8

-0.27 (-0.44%)

ETSY News

News Image35 minutes ago - The Motley FoolHistory Says the Nasdaq Will Soar in 2024: Here Are My Top 5 Software Growth Stocks to Buy Right Now

The Nasdaq soared 43% last year and is already up 13% so far in 2024. More gains could be on the horizon for tech stocks.

News Image2 hours ago - InvestorPlace3 Sorry E-Commerce Stocks to Sell in May While You Still Can

Though e-commerce is a critical part of the global economy, these could be three e-commerce stocks to sell due to overvaluation.

News Image14 hours ago - Market News VideoSoFi Technologies Larger Than S&P 500 Component Etsy
News Image18 hours ago - InvestorPlaceTicking Time Bombs: 3 Stocks to Ditch Before They Implode

Discover key stocks to sell as ongoing inflation and market volatility challenge even the most robust investments.

News Image2 days ago - Market News VideoInsmed Moves Up In Market Cap Rank, Passing Etsy
News Image2 days ago - InvestorPlace3 Sorry Growth Stocks to Sell in May While You Still Can

Does your portfolio contain bad growth stocks? These are some of the growth stocks to sell before it's too late.

News Image3 days ago - InvestorPlace3 Sorry Overhyped Stocks to Sell in May While You Still Can

Discover three overhyped stocks to sell in May before their valuations plummet. Avoid these risky investments.

News Image10 days ago - The Motley FoolAmazon Is Magnificent, but Is This E-Commerce Stock a No-Brainer Buy on the Dip?

The industry juggernaut has made shareholders rich in the past. This smaller online marketplace might have greater upside moving forward.

News Image12 days ago - The Motley FoolIs It Time to Sell Etsy? Here Are 2 Better Stocks to Buy Now

It looks cheap, but growth has stalled for more than a year.

News Image13 days ago - Market News VideoNotable Friday Option Activity: NET, GNRC, ETSY
News Image14 days ago - ChartmillExploring the Growth Potential of NASDAQ:ETSY as It Nears a Breakout.

ETSY INC (NASDAQ:ETSY)—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

News Image15 days ago - InvestorPlace3 Tech Stocks to Sell in May Before They Crash & Burn

Looking to avoid losses? Make sure you sell these tech stocks before they continue to underperform the stock market.

ETSY Links
Follow us for more