Why NASDAQ:ETSY Is a Standout High-Growth Stock in a Consolidation Phase.

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether ETSY INC (NASDAQ:ETSY) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but ETSY INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Growth Analysis for NASDAQ:ETSY

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:ETSY was assigned a score of 8 for growth:

• The Earnings Per Share has grown by an impressive 137.87% over the past year.
• ETSY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.26% yearly.
• Measured over the past years, ETSY shows a very strong growth in Revenue. The Revenue has been growing by 35.41% on average per year.
• The Earnings Per Share is expected to grow by 31.85% on average over the next years. This is a very strong growth
• ETSY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.22% yearly.

Health Assessment of NASDAQ:ETSY

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:ETSY, the assigned 7 for health provides valuable insights:

• ETSY's Altman-Z score of 2.66 is fine compared to the rest of the industry. ETSY outperforms 65.63% of its industry peers.
• ETSY has a debt to FCF ratio of 3.53. This is a good value and a sign of high solvency as ETSY would need 3.53 years to pay back of all of its debts.
• The Debt to FCF ratio of ETSY (3.53) is better than 62.50% of its industry peers.
• ETSY has a Current Ratio of 2.49. This indicates that ETSY is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Current ratio, with a value of 2.49, ETSY belongs to the top of the industry, outperforming 90.63% 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 has a Quick ratio of 2.49. This is amongst the best in the industry. ETSY outperforms 93.75% of its industry peers.

Looking at the Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:ETSY has achieved a 8:

• The Return On Assets of ETSY (11.85%) is better than 87.50% of its industry peers.
• ETSY's Return On Invested Capital of 14.90% is amongst the best of the industry. ETSY outperforms 84.38% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for ETSY is above the industry average of 11.29%.
• The 3 year average ROIC (13.89%) for ETSY is below the current ROIC(14.90%), indicating increased profibility in the last year.
• ETSY has a better Profit Margin (10.75%) than 90.63% of its industry peers.
• ETSY has a Operating Margin of 13.24%. This is amongst the best in the industry. ETSY outperforms 90.63% of its industry peers.
• In the last couple of years the Operating Margin of ETSY has grown nicely.
• ETSY has a Gross Margin of 70.41%. This is amongst the best in the industry. ETSY outperforms 87.50% of its industry peers.

Why is NASDAQ:ETSY a setup?

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:

Although the technical rating is bad, ETSY does present a nice setup opportunity. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 65.47. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 65.45, a Stop Loss order could be placed below this zone.

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

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

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

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.