ETSY - Etsy: Covert Recessionary Hedge As People Look For Secondary Income (Rating Upgrade)
2024-04-09 15:05:20 ET
Summary
- Etsy's stock price has reversed its recent rally and is now trading at a relatively low valuation compared to its historical norm and other growth stocks.
- The company's supply trends remain strong, with an expected increase in sellers on the platform, while traditional retailers face negative headwinds.
- Etsy has a solid balance sheet and strong cash flow and is aggressively buying back its shares, improving shareholder value.
- Views that the firm will fail appear unsupported due to its healthy balance sheet and cash-flow margins.
- The ongoing decline in full-time jobs could benefit Etsy's long-term growth as more people look to it for supplementary income.
I covered Etsy ( ETSY ) six months ago with a neutral outlook . At that time, I believed the stock was likely oversold after tumbling 80%, having a far superior "P/E" valuation than in the past. I believe ETSY was trading in a clear bubble pattern from 2020 to 2022 as investors overestimated its growth rate based on the temporary impact of COVID lockdowns, encouraging more people to start businesses on the platform....
Etsy: Covert Recessionary Hedge As People Look For Secondary Income (Rating Upgrade)