NASDAQ:ETSY: a strong growth stock preparing for the next leg up?.

In this article, we'll take a closer look at ETSY INC (NASDAQ:ETSY) as a potential candidate for growth investing. While it's important for investors to conduct their own research, ETSY INC has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

How We Gauge Growth for 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 139.20% 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!
• Based on estimates for the next years, ETSY will show a very strong growth in Earnings Per Share. The EPS will grow by 31.85% on average per year.
• The Revenue is expected to grow by 10.69% on average over the next years. This is quite good.

Health Assessment of NASDAQ:ETSY

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:ETSY has earned a 7 out of 10:

• ETSY has a better Altman-Z score (2.59) than 66.67% of its industry peers.
• The Debt to FCF ratio of ETSY is 3.59, which is a good value as it means it would take ETSY, 3.59 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 3.59, ETSY is in the better half of the industry, outperforming 69.70% of the companies in the same industry.
• A Current Ratio of 2.21 indicates that ETSY has no problem at all paying its short term obligations.
• ETSY's Current ratio of 2.21 is fine compared to the rest of the industry. ETSY outperforms 78.79% of its industry peers.
• ETSY has a Quick Ratio of 2.21. This indicates that ETSY is financially healthy and has no problem in meeting its short term obligations.
• The Quick ratio of ETSY (2.21) is better than 90.91% of its industry peers.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:ETSY, the assigned 7 is a significant indicator of profitability:

• ETSY has a Return On Assets of 11.45%. This is amongst the best in the industry. ETSY outperforms 87.88% of its industry peers.
• ETSY has a Return On Invested Capital of 13.92%. This is amongst the best in the industry. ETSY outperforms 84.85% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for ETSY is above the industry average of 11.22%.
• The 3 year average ROIC (13.53%) for ETSY is below the current ROIC(13.92%), indicating increased profibility in the last year.
• ETSY has a better Profit Margin (11.19%) than 90.91% of its industry peers.
• The Operating Margin of ETSY (12.66%) is better than 84.85% of its industry peers.
• Looking at the Gross Margin, with a value of 69.85%, ETSY belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.

How does the Setup look for NASDAQ:ETSY

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:ETSY is 7:

ETSY has a bad technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period.

More Strong Growth stocks can be found in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of ETSY

For an up to date full technical analysis you can check the technical report of ETSY

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.