Volatile markets amid ongoing macroeconomic issues have created a fuss for investors to invest in the market. To name a few, the Russia-Ukraine war, supply-chain disruptions, rising commodity prices, the resurgence of COVID-19, and labor challenges are some of the factors that have negatively clouded investors’ minds.
Additionally, elevated inflation and rising interest rates added fuel to the fire, indicating a slowdown in the economy.
As a result, the S&P 500 (SPX) tanked more than 20% year-to-date.
In such a scenario, TipRanks’ insightful tools can be helpful. Using data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, TipRanks’ Website Traffic Tool offers an estimate of consumers’ visits to websites of the companies and its correlation with the share price.
A rise in website traffic for a company indicates consumers’ optimism about the company, and vice-versa.
Let’s dig into the fundamentals of two valuable stocks with rising website trends and strong prospects.
Crocs, Inc. (NASDAQ: CROX)
Colorado-based Crocs manufactures and markets comfortable footwear, apparel, and accessories for all.
With a market capitalization of $2.95 billion, the company operates in the Americas, Asia-Pacific, Europe, and the Middle East & Africa (EMEA).
Trapped in the broader market sell-off, Crocs is hovering near its 52-week low price. Nevertheless, the strong first-quarter results on rising customer demand reflect the underlying strength of Crocs. This, in turn, indicates that the company is well-positioned to create shareholder value in the long term.
As a result, investors buying the dips can consider Crocs as an attractive buying opportunity at the current price level (down 63.7% year-to-date).
Encouragingly, Crocs CEO Andrew Rees said in the first-quarter earnings release, “Consumer demand remains strong giving us the confidence to raise our full year outlook for revenue to approximately $3.5 billion, adjusted operating margin to 26% to 27%, and adjusted diluted earnings per share to $10.05 to $10.65.”
Following the first-quarter earnings release, Williams Trading analyst Sam Poser maintained a Buy rating on Crocs with a price target of $200. Poser’s price target implies 317.1% upside potential over the next 12 months.
On TipRanks, we noticed a website traffic uptrend on the website traffic tool. In April and May, total visits to Crocs’ websites showed an increasing trend, on a global basis, representing 82.99% and 151.97% jumps, respectively, on a year-over-year basis. Also, year-to-date website growth, compared to year-to-date website growth in the previous year, came in at 151.89%.
This, in turn, indicates that the company might report upbeat results in the second quarter.
Overall, the rest of the Street is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on four Buys and three Holds. The average Crocs price target of $95 implies 98.12% upside potential.
SoFi Technologies, Inc. (NASDAQ: SOFI)
With a market capitalization of $4.95 billion, SoFi Technologies serves as an online personal finance company and an online bank. It offers a portfolio of financial products such as mortgages, personal loans, student and auto loan refinancing, credit cards, banking, and investing.
Besides for macro issues, Sofi has experienced a number of company-related headwinds. The extended student loan moratorium and the government-imposed pause on student loan repayments impacted the financials of the company.
Nevertheless, SoFi’s increasing client base and strong products reflect long-term growth prospects. In addition, rising interest rates are expected to benefit the company.
The company showed resiliency in its first-quarter results. Adjusted net revenues grew 49% year-over-year on the back of outstanding performance across all segments. Also, total members and products reflected significant double-digit growth.
Looking forward, SoFi CEO Anthony Noto said, “Our strong momentum in member, product and cross-buy growth also reflects the success we have achieved in building the SoFi brand over the last year. We committed to investing more in product and brand marketing once we reach the appropriate scale and unit economics last year.”
As a result, SoFi could be a strong bet for investors buying the dips, given its current price level and robust fundamentals.
Recently, Mizuho Securities analyst Dan Dolev maintained a bullish stance on SOFI and set a price target of $9 (66.36% upside potential).
Dolev commented, “We remind investors that the CEO has built the business during a very choppy environment, and he is confident that he can do it again. We continue to believe that SoFi’s diversified revenue streams, durable business model and Galileo’s BaaS offerings should benefit its fundamentals in the long-term.”
The rest of the Street is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on seven Buys and five Holds. The average SoFi price target of $9.71 implies 79.48% upside potential from current levels. Shares have lost 65.5% year-to-date.
An upward trend in website clicks is also visible on the online traffic tool. In April and May, total visits to the company’s website showed an increasing trend, on a global basis, representing a year-over-year surge of 221.83% and 250.27%, respectively, indicating strong results in the June quarter. Also, year-to-date website growth, compared to year-to-date website growth in the previous year, stood at a whopping 321.09%.
Concluding Remarks
In the current turbulent markets, investors seem to be in murky waters about making wise investments. As a result, website trends that visualize the popularity of stocks can be of help. Analysts expect both stocks, SoFi and Crocs, to rise sharply from their current levels, which also reflects an increase in website clicks.
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