The current uncertain macroeconomic environment has made investors hesitant to invest in the market. A number of factors, including the Russian-Ukrainian war, labor issues, supply-demand imbalance, inflationary pressures and the Fed’s hawkish stance on interest rates, have significantly influenced investor sentiment.
As a result, the S&P 500 (SPX) has fallen more than 14% since the start of the year.
In such circumstances, the need for the insightful tools of TipRanks seems appropriate. Use of SEMrush Holdings Data (SEMR), the world’s largest website usage monitoring service, TipRanks’ Website Traffic Tool provides an estimate of consumer visits to company websites and its correlation to stock price.
Increased traffic to a company’s website gives the impression that consumers may be optimistic about the company, and vice versa.
Let’s look at two stocks with rising website trends and strong prospects.
Victoria’s Secret & Co. (VSCO)
Victoria’s Secret, a retailer specializing in intimate, personal care and beauty products for women, offers products in stores and online internationally.
With a market capitalization of $3.38 billion, the company is the largest lingerie retailer in the United States. Yet the company has grappled since 2016 with shifting customer preferences and corporate leadership issues.
Interestingly, with its brand revolution and remarkable execution, the company seems to have weathered the uncertain macroeconomic environment.
Recently, Victoria’s Secret announced better than expected results for the first quarter of fiscal 2022 and provided a decent outlook for the year. Net sales and earnings both exceeded analysts’ expectations.
Looking ahead, Victoria’s Secret CEO Martin Waters said, “We are well prepared to continue to meet big challenges with products and marketing that delight our customers, new business initiatives designed to expand our customer base and increase sales, and disciplined financial management.
After the first quarter results were released, B.Riley Financial analyst Susan Anderson maintained a buy rating on Victoria’s Secret, but lowered the price target to $63 from $77. Anderson’s price target implies upside potential of 55.79% over the next 12 months.
Anderson believes that the continued launch of new products, global expansion and growing popularity of the new Happy Nation brand are “significant growth drivers” for the retailer.
The five-star analyst believed the stock “presents significant upside opportunity” at the current level.
On TipRanks, we could notice an upward trend in website traffic on the website traffic tool. In April 2022, the total number of visits to the Victoria’s Secret website showed an upward trend, globally, representing a jump of 22.39% year-over-year. Additionally, year-to-date website growth, compared to year-to-date website growth, was 49.68%.
This, in turn, indicates that the company could post strong results in the second quarter.
Overall, the rest of the street is cautiously bullish on the stock, with a moderate buy consensus rating based on seven buys and three takes. Victoria’s Secret’s average price target of $59.30 implies an upside potential of 46.64%. Shares have lost 4.85% over the past year.
The Procter & Gamble Company (PG)
With a market capitalization of $348.67 billion, Procter & Gamble is the world’s most valuable company in the consumer staples sector. It offers a portfolio of quality, well-known brand name personal care and home care products.
The continued growth and popularity of the Company’s existing brands and products, as well as innovative products and brands, illustrates the Company’s resilient business model.
Additionally, Procter & Gamble has a long track record of paying dividends, with consecutive increases. The amount of the dividend has increased from $0.601 per share in 2013 to the current rate of $0.913 per share. The stock offers investors a dividend yield of 2.41%, well above the industry average of 1.514%.
Given that the current macro environment favors defensive stocks, Procter & Gamble could be a solid bet, given its current price performance (up 9.05% from last year) and strong fundamentals .
Recently, Deutsche Bank analyst Stephen Powers maintained a bullish stance on PG, but lowered the price target to $171 (17.67% upside potential) from $177.
According to Powers, the consumer goods sector has outperformed strongly over the past six months despite a still difficult and uncertain macroeconomic environment. However, given that the sector is “at a critical juncture”, the analyst perceives a “disruption” in the consumer products space in the United States.
The rest of the street is cautiously bullish on the stock, with a moderate buy consensus rating based on 10 buys and six holds. Procter & Gamble’s average price forecast of $168.73 implies an upside potential of 16.11%.
We also noticed an upward trend in website clicks on the online traffic tool. In April 2022, the total number of visits to the company’s websites showed an upward trend, globally, representing a 46.32% year-over-year increase, indicating strong results to report. In addition, website year-to-date growth, compared to website year-to-date growth, was 128.08%.
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In today’s volatile markets, investors fear making investment decisions. Website trends help predict the popularity of stocks, which could help in making prudent investments to some extent. Based on a long-term outlook, Victoria’s Secret and Procter & Gamble shows an upward trend in terms of websites visited.
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