Etsy Just Hit The Lower Rail Of An Upwardly Sloped Trend Channel

The work from home economy has produced a number of interesting scenarios over the past year, both on the bullish side and the bearish side. One of the companies that has benefitted, or at least seen its stock climb sharply, is Etsy, Inc. (ETSY), the online marketplace operator. Since the low last March, the stock is up almost 600% and at its high it was up 672%.

It hasn’t been a case of the stock rallying while the earnings and revenue were flat either. Earnings jumped by 332% in the fourth quarter and they are expected to jump by over 700% in Q1 2021. Revenue was up 129% in Q4 and is expected to jump 140.5% in Q1. Over the last three years, earnings have increased by an average of 83% annually and revenue has increased by an average of 52% per year.

Those huge growth numbers can be attributed to the pandemic and people staying at home more. There were also factors like mask sales that helped boost revenue. The company was already growing before the pandemic, but the growth rates accelerated sharply after the pandemic hit.

The growth figures combined with the profitability measurements are very attractive and they combine to form the SMR rating. The return on equity is at 60.8% and the profit margin is at 21.2%. Looking at the fundamental analysis screener from Tickeron, the company’s SMR rating is a 9—an extremely high score.

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The SMR rating isn’t the only fundamental rating that is extremely high either. The Profit vs. Risk rating is a 3 and the Outlook rating is 33. There is also a Seasonality Score of 85% that could help boost the stock in the coming months.

When you look at all of these fundamental factors and the technical factors, it’s no wonder that Etsy is considered a “strong buy” on Tickeron’s scorecard. Something to remember about Tickeron’s scorecard is that it is based on artificial intelligence. The algorithm takes all fundamental and technical factors into account and then calculates whether the stock is a buy or not.

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Disclaimer: Although our services incorporate historical financial information, past financial performance is not a guarantee or indicator of future results. Moreover, although we believe the ...

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