E-commerce has gone from a casual past time to big-time business, as online operations have been thrust forward by the COVID-19 pandemic with some epic results.
The future of e-commerce shines bright, and Etsy Inc (ETSY) seems to be at the forefront of the “Boom” which is taking business away from the traditional brick and mortar establishments.
Click to view Etsy Inc (ETSY) shares
on EasyEquities
Fundamentals
The online marketplace blew analyst expectations out of the water with its second-quarter earnings released in August, which saw Revenue increase by 137% year-over-year. Revenue was driven by strong growth in both the marketplace and services revenue.
Etsy's earnings per share also beat expectations by $0.36 per share. The company was well-positioned to capitalize on the shift to online shopping during the COVID-19 pandemic.
Etsy Inc (ETSY) share overview:
- Sector: Consumer Discretionary.
- Market Cap of $17.35 billion.
- Dividend Yield: N/A
- Price/Earnings (LTM): 113.7x
- Price/Book: 33.1x
- Next Earnings: 28th of October 2020.
- 52 Week Range low of $31.69 and $153.20 per share high.
Outlook – Etsy is growing, the company shifted to cloud in Q1, which saw them capitalize on the e-commerce boom driven by the pandemic. In Q2, they introduced new features to benefit buyers and sellers on the platform with Q3 already setting up for good results.
With Etsy's inclusion into the S&P 500 and e-commerce taking the world by storm due to the raging coronavirus pandemic, this online marketplace is undoubtedly set to topple expectations.
Chart Life
Etsy Inc (ETSY) has been in a steady uptrend which saw the share price gain over 383% from the COVID-19 pandemic lows in March. The price action has broken out of a base formation which could be revisited before another leg higher. This throwback to the base level at $137.67 could give new investors a better entry opportunity.
The 50-day simple moving average of the price (blue line) is below the current price action and is acting as support for higher prices currently.
Short interest on outstanding shares on Etsy Inc (ETSY) is 7.1%, while the median analyst expectations are $153.12 per share (red line).
Portfolio particulars
- Portfolio Hold (Current)*
- Portfolio Buy opportunity: above $137.00 per share**
- WhatsTheBeef long term target price: $175.00 per share.
Click to view Etsy Inc (ETSY) shares
on EasyEquities
Informed decisions
Etsy Inc has shown good value for money over the pandemic and compares favorably with other e-commerce stocks like Shopify. The inclusion into the S&P 500, which will undoubtedly see capital flow into the online marketplace. Etsy is also converting mask buying clients into regular customers which should count towards the bottom line seeing as the pandemic is far from over.
New to investing
and want to know more about e-commerce stocks?
Read: The E-commerce’s Boom? (EBAY) and The new “retail” normal is on fire!
Sources – EasyResearch, Etsy Inc, Koyfin, SeekingAlpha, Wikipedia.
Take note: stock data was taken on 14/10/2020 during the U.S market open.
*Portfolio Hold (Current) refers to investors who already hold the stock within their portfolio before the U.S. market open.
**Portfolio Buy opportunity refers to Technical level crossed which might imply that the markets behavior would support the outlook and Close above refers to a share price close above a Technical Resistance level.
Follow Barry Dumas
@BEEF_FINMARKETS
Barry is a market analyst with GT247, with a wealth of experience in the investment markets. Now in his tenth year in the markets, Barry "The Beef" Dumas brings a combination of technical analysis and fundamental insights to the table.
