Alibaba (NYSE: Bubba), JD.com (NASDAQ: JD), and TJX companies (New York Stock Exchange: TJX) reports quarterly results this week. While macro challenges and their impact on consumption remain a concern, his website traffic screener for TipRanks shows a sequential increase in trends for all three web visits, suggesting that these of companies could improve their financial position.
Website Screener: A leading indicator of future stock performance
Monitoring the performance of your company’s website domain is important. This is because it helps investors analyze how changes in consumer behavior may affect future earnings reports and company stock prices.
Let’s take the example of Netflix (NASDAQ: NFLX). Our website his traffic screener showed that his web traffic numbers for NFLX were increasing before earnings. This has led to increased user engagement and the addition of more paying subscribers than expected. Thanks to the improvement, NFLX’s share price closed higher after reporting its third quarter earnings.
Let’s see how BABA, JD, and TJX’s website traffic is ahead of their revenue.
Alibaba
Our screeners show that things are improving for Alibaba, which is struggling amid slowing consumption and increasing competition. According to TipRanks website traffic screener, the number of visits to alibaba.com and his two other websites (aliexpress.com and taobao.com) in the quarter at the end of September (Q2) were ) increased by 36.4%.
The impact of improved traffic was also reflected in Alibaba’s strong performance at the 11.11 Global Shopping Festival. The company announced that its GMV (Gross Merchandise Volume) performance was in line with the previous year despite macro concerns.
Alibaba is scheduled to report its second quarter results on November 17. Alibaba has beaten analyst earnings estimates for the past three quarters in a row. As for the second quarter, analysts expect Alibaba to post earnings of $1.67 per his share.
BABA Buy or Hold?
BABA stock is a strong buy on TipRanks. There are 9 unanimous purchase recommendations. What’s more, the analyst’s price target of $137.78 suggests a 94.7% upside potential, given the slump in his BABA stock over the past year.
However, hedge funds sold a whopping 12.7 million BABA shares last quarter, leading to an Underperform Smart score of 2 out of 10.
JD.com
Like Alibaba, JD.com’s traffic trends are definitely improving. Visits to jd.com and other websites (aihuishou.com) increased 38.8% in Q3 from the previous quarter, according to TipRanks’ website traffic tool.
Improved traffic led to strong performance in the recently concluded 2022 Singles Day Grand Promotional Event. JD.com highlighted that its growth rate over the period (October 31 to he November 11) exceeded the industry average.
JD.com is expected to report its third quarter results on November 18th. The company has beaten analyst earnings estimates for the past four consecutive quarters. For the third quarter, analysts expect JD.com to post earnings of $0.68 per share, reflecting increases from the prior year and quarter.
Is JD.com a good stock to buy?
At TipRanks, JD.com stock has a strong buy consensus rating based on 12 buy and 1 hold recommendations. Meanwhile, analysts’ average price target is $80.15, suggesting a 63.8% upside potential.
Analysts are bullish, but hedge funds sold 18.7 million JD shares last quarter. Overall, JD stock has a Neutral Smart Score of 7 out of 10.
TJX Companies
This off-price home fashion and apparel retailer benefits from its value proposition. The company has delivered strong financials so far despite a challenging retail environment. Our company’s website his traffic tool shows that the company’s business momentum has continued into the third quarter. However, harsh year-over-year comparisons could hurt TJX’s sales growth.
According to the tool, visits to tjmaxx.com and two other websites (marshalls.com and sierra.com) increased 19.2% quarter-on-quarter in Q3.
TJX will release its third quarter financials on November 16th. Analysts expect TJX to post earnings of $0.80 per share in the third quarter, reflecting an increase from the previous quarter. However, tough year-over-year comparisons could result in lower year-over-year EPS.
Is TJX Buy, Sell or Hold?
TJX stock is a strong buy on TipRanks based on 12 buys and 2 holds recommendations. Additionally, the analyst’s average price target of $78.07 suggests a 5.6% upside potential.
Insiders have sold $11.9 million worth of TJX stock in the past three months, with an Outperform Smart score of 10 to 9.
Conclusion
Web site traffic trends show that the financial health of these companies is recovering. BABA and JD’s stock prices have been significantly revised, so an improvement in financial conditions could lead to a significant increase in stock prices. Meanwhile, TJX has outperformed its benchmark index for the past six months and faces tough comparisons. Nonetheless, TJX is expected to benefit from its attractive pricing, which could support the stock’s upward trend.
Disclosure
