Trade-Ideas LLC identified Etsy ( ETSY) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Etsy as such a stock due to the following factors:

  • ETSY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $10.0 million.
  • ETSY has traded 987,613 shares today.
  • ETSY is trading at 28.94 times the normal volume for the stock at this time of day.
  • ETSY is trading at a new high 10.04% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on ETSY:

Etsy, Inc. operates a marketplace to make, sell, and buy goods online and offline worldwide. The company through its technology-based platform connects a community of sellers and buyers. Currently there is 1 analyst that rates Etsy a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Etsy has been 1.6 million shares per day over the past 30 days. Etsy has a market cap of $1.1 billion and is part of the services sector and specialty retail industry. Shares are up 21.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Etsy as a sell. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

Highlights from the ratings report include:
  • Net operating cash flow has significantly decreased to $1.79 million or 79.92% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Internet & Catalog Retail industry average, but is greater than that of the S&P 500. The net income increased by 103.3% when compared to the same quarter one year prior, rising from -$36.59 million to $1.19 million.
  • The gross profit margin for ETSY INC is currently very high, coming in at 71.68%. Regardless of ETSY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.45% trails the industry average.
  • Compared to other companies in the Internet & Catalog Retail industry and the overall market, ETSY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • ETSY's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 45.80%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter.

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