Investors are hesitant to invest in the market due to the current uncertain macroeconomic backdrop. A number of factors, including the war between Russia and Ukraine, labor issues, supply and demand imbalances, inflationary pressures and the Fed’s hawkish stance on interest rates, have played a large role in investor sentiment.
As a result, the S&P 500 (SPX) has fallen more than 14% year-to-date.
In situations like these, the need for TipRanks insightful tools seems appropriate. Use of data from SEMrush Holdings (SEMR), the world’s largest website usage monitoring service, TipRanks’ website traffic tool provides estimates of consumer visits to its websites and their correlation to stock prices.
An increase in a company’s website traffic gives a perception that consumers may be optimistic about that company, and vice versa.
Let’s take a look at two stocks that are trending up on the website and have a good future.
Victoria’s Secret & Company (VSCO)
Victoria’s Secret is a specialty retailer of women’s underwear, personal care and beauty products, offering products in stores worldwide and online.
The $3.38 billion market cap is the largest US lingerie retailer, but since 2016 it has struggled with shifting customer preferences and corporate leadership issues.
Interestingly, the company appears to have weathered an uncertain macroeconomic environment with a brand revolution and outstanding execution.
Recently, Victoria’s Secret reported better-than-expected results for the first quarter of fiscal 2022, providing good outlook for the year. Both net sales and earnings beat analyst expectations.
Looking ahead, Victoria’s Secret CEO Martin Waters said:
After the first quarter results, B.Riley Financial analyst Susan Anderson maintained her “Buy” rating for Victoria’s Secret, but lowered her price target from $77 to $63. Anderson’s price target suggests a 55.79% upside potential for her over the next 12 months.
Anderson sees continued new product launches, global expansion and growing popularity of the newly launched tween brand Happy Nation as “meaningful growth avenues” for the retailer.
Five-Star analysts opined that the stock “provides significant upside opportunity” at current levels.
At TipRanks, we were able to spot an increasing trend in website traffic in our website traffic tool. In April 2022, total visits to Victoria’s Secret websites showed an upward trend on a global basis, increasing 22.39% year-over-year. And year-to-date website growth was 49.68% compared to the year-to-date website growth rate of the previous year.
This suggests that the company may report strong results in the second quarter.
Overall, the rest of the street is cautiously optimistic about the stock, with a medium buy consensus rating based on 7 buys and 3 holds. The average Victoria’s Secret target price is $59.30, implying a 46.64% upside potential. The stock has fallen 4.85% over the past year.
Procter & Gamble Company (PG)
With a market capitalization of $348.67 billion, Procter & Gamble is the world’s most valuable company in the consumer goods sector. We offer a portfolio of high quality, name brand personal care and home products.
The continued growth and popularity of the company’s existing brands and products, along with innovative products and brands, demonstrate the company’s resilient business model.
Procter & Gamble also has a long and consecutive dividend payout track record. The dividend amount increased from $0.601 per share in 2013 to $0.913 per share today. This stock offers investors his 2.41% dividend yield. This is well above his sector average of 1.514%.
The current macroeconomic backdrop favors defensive stocks, so given current price performance (up 9.05% over the past year) and strong fundamentals, Procter & Gamble could be a strong bet .
Recently, Deutsche Bank analyst Stephen Powers maintained his bullish stance on PG, but lowered his price target from $177 to $171 (17.67% upside potential).
According to Powers, the consumer goods sector has outperformed strongly over the past six months despite a continuing difficult and uncertain macro environment. However, analysts see a “break” across the U.S. consumer goods sector, given that the sector is in a “crucial period.”
The rest of the street is cautiously optimistic about the stock, with a moderate buy consensus rating based on 10 buys and 6 holds. Procter & Gamble’s average price forecast of $168.73 implies a 16.11% upside potential.
We also noticed an upward trend in website clicks in online traffic tools. In April 2022, the company’s total visits to his website showed an upward trend on a global basis, showing a 46.32% surge year-on-year, indicating strong results to be reported. Also, his website grew a whopping 128.08% year-to-date compared to the year-to-date growth of the website in the previous year.
In today’s volatile market, investors feel uneasy about making investment decisions.Website trends can help predict the popularity of stocks and can help you make some prudent investments. Procter & Gamble tends to be higher in terms of websites visited.
Read full disclosure