Is it Time to Buy Etsy?

The online retailer Etsy (ETSY) may be turning the corner as one of the worst-performing stocks in the S&P 500 Stock Index ($SPX) (SPY).  Etsy was the second-weakest performer in the S&P 500 since the end of 2021, losing more than two-thirds of its value over the past 21 months.  However, Etsy is now seeing a record number of analyst buy ratings, and the average price target forecast for the stock implies a +70% gain from current levels.

Shares of Etsy dropped to a 3-1/2 year low Tuesday, but some analysts believe the stock is poised for a rebound.  Wolfe Research last week raised its recommendation on the stock to outperform, and Huntington Private Bank said, “Etsy may provide a pretty attractive entry point, and we’re starting to increasingly feel like the next driver of growth is going to be diversification in your portfolio, and maybe beefing up some of those bets on underperforming stocks.”