Etsy, Inc. (ETSY)

Etsy stock forecast: buy or sell

Etsy stock outlook

  • Etsy closed yesterday at $111.29 after dropping a -2.81%.
  • From the chart point view, price is drawing a scaled uptrend since late March with higher tops and higher bottoms. Up to date, shares made a 271.59% profit since the beginning of this rally
  • Etsy, Inc. operates online market places for buyers and sellers primarily in the United States, the United Kingdom, Canada, Australia, France, and Germany.
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Important:
The comments written in this article are personal and not recommendations for you to buy or sell stocks. The author of this document does not know the specific positions of the reader, his or her own financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are provided for general educational motives only

Etsy stock chart overview

Should I buy Etsy stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is ETSY stock a buy?

In the current situation of Etsy there is not any eligible buy setup. This doesn't mean ETSY will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell Etsy stock?

Knowing when to sell a stock is even harder than knowing when to buy it. Like when we have to buy shares, choosing when is the best time to sell is not a fickle decision, and we must adhere our own trading style. Our trading system selects very simple strategies to guide us on when is a good moment to sell a stock. Be aware that these strategies are not intended for shorting Etsy stock

As a golden rule, you should not mantain a trading operation that generates higher than expected losses by the time of the buy. The timing to sell your stock always has to be dictated by the stop-loss (automatic or manual)

Is it time to sell Etsy stock?

In the current situation of Etsy there is not any eligible sell setup, so Etsy stock holders with operations in profit can keep their positions

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Analysts' recommendations to buy or sell Etsy stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, 4 analyst ratings were published for Etsy. General sentiment is bullish, with 4 out of 4 posting positive forecasts

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Etsy ratings

Brokerage firmRating
Jun 22nd, 2020
Goldman Sachs Group Strong buy
Jun 23rd, 2020
Royal Bank of Canada Buy
Jun 25th, 2020
Loop Capital Strong buy
Jun 30th, 2020
KeyCorp Buy

Technical analysis

Etsy stock started an uptrend in late March, and gained an amazing 271.59%. The price line shows higher highs and lows, and along the way provided very few buy points for those who wanted to enter. Latest low was in late May, when price bounced at $69.35. Like in all uptrends, price needs to rest and now price is moving in a range between $115.50 and $69.35

SMAs overview

A favorite tool of many technical analysts are the moving averages, that easily show market direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Technical analysts use support and resistance levels as a way to spot price points in the stock price action that may work as obstacles, containing the price of an asset to move in certain direction. A support level is a level where the price may find support as it falls. Price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down the support, it will probably continue falling until approaching another support level. On the other side, resistances are where the price tends to find resistance as it moves up. In the same way, this means that the price is more liable to "rebound" at this level, and if it finally breaches this level, it will rise easily until it finds the next resistance

The current resistance levels are:

  • R1: $115.50 (3.78% above)
  • The current supports are:

  • S1: $88.02 (-20.91% below)
  • S2: $73.35 (-34.09% below)
  • S3: $71.80 (-35.48% below)
  • Bollinger bands

    This is an indicator that was introduced in the 1980s by John Bollinger. Essentially, the Bollinger Bands are bands that fluctuate around a moving average, varying the distance from the bottom to the top depending on market volatility. They are usually drawn by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Since the price surpassed the upper band on July 1, the price dropped by 0.42%

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. It is intended to map the current and historical strength or weakness of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are intended to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in 1978

    Relative Strength Indicator climbed above the 70 level yesterday, marking a reading of 71.82. Contrary to what many investors may think, the fact that the relative strength (RSI) value is in the overvalued zone does not in any way imply a sell signal, as shares can climb during several weeks being above 70

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    Earnings and financials

    In early May, Etsy had the quarterly investors event and posted the first-quarter report. Etsy missed market estimates and reported a per-share earnings of %s of $0.10, that is a -44.44% lower than the initial estimates of $0.18. Reported sales were $228.1 million versus estimates of $220.2 million.

    In contract, the EPS for the same quarter last year was $0.24, so reported EPS is a decrease of -58.33%. Revenue skyrocketed a 34.68% on an annualized basis in the 1st-quarter, from $169.3M to $228.1M last quarter. Etsy posted 3 year over year quarterly results in green, increasing turnover by 124.27% from $101.7M on 2017-Q2.

    Etsy will host the quarterly earnings call on late next July. Market expects earnings of %s a share of $0.37, compared to Q1 that was $0.10. Earnings reporting day has a more than usual risk for stock investors as the information published can gap up or down the shares price with exceptionally low volume and not honouring your buy/stop-loss orders. You can probably find more information about the earnings call and the financial reports on the Investor Relations section of its website: http://www.etsy.com.

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