Website Traffic Reveals Interesting Trends for These 2 Consumer Stocks

Stock Market

The ongoing global economic scenario is currently fraught with multiple headwinds in the form of geopolitical tensions, supply-chain constraints, rising interest rates, and inflationary pressures. Investors are left insecure and confused, unable to make prudent investment decisions.

One factor that is increasingly being monitored, especially for companies with online sales channels, is their website traffic, which helps gauge interest in a company’s products and service offerings.

The TipRanks’ Website Traffic Tool uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, to highlight stocks that have been witnessing heightened website traffic in recent times.

Rising website traffic could hint that these stocks are in the spotlight and can help investors make safer investment decisions.

Presently, the tool showcases two stocks from the Consumer Goods sector; let’s take a look at each of them.

Lovesac is an American furniture retailer and specializes in a patented modular furniture system. It designs, manufactures, and sells furniture that includes modular couches called sactionals; foam beanbag chairs called sacs; as well as custom-fit covers and associated accessories.

Shares of the Lovesac Company have lost almost half of their market capitalization year-to-date. However, shares gained 21% on March 29, after it delivered a blowout fourth-quarter results, significantly topping both earnings and revenue estimates.

The Wall Street community is cautiously optimistic about the stock, with a Strong Buy consensus rating based on two Buys. The average Lovesac Company price target of $111.50 implies 95.65% upside potential to current levels.

Let us look at what the website traffic growth reflects about LOVE’s Q1 performance.

At the time of writing, TipRanks’ Website Traffic tool indicates that in Q122, total estimated visits on the lovesac website grew 53.10% on a year-over-year basis. However, website traffic decreased 11.63% in Q122 compared to Q421. Positively, the LOVE website recorded an impressive 59% monthly rise in global visits in April, compared to March.

Shares of the multinational luxury fashion holding company, which owns three major brands: Coach, Kate Spade, and Stuart Weitzman, are down around 15% year-to-date.

However, they gained over 15% on May 12 in reaction to stellar fiscal Q3 results, which topped both earnings and revenue estimates, driven by robust demand and double-digit growth for each of its brands.

Turning to Wall Street, the analyst consensus is optimistic about Tapestry, with a Strong Buy rating based on 13 Buys and two Holds. The average Tapestry stock forecast was $47.53, which indicates an upside potential of 38.41%.

Let’s take a look at the website traffic growth to analyse if Tapestry will post similar upbeat results for the upcoming quarter.

At the time of writing, the TipRanks Website Traffic Tool indicates that in Q422, total estimated visits on the Tapestry website grew an impressive 82.64% on a year-over-year basis.

Meanwhile, website traffic increased 1.77% in Q422 compared to Q322. Further, the TPR website recorded a 13.42% monthly rise in global visits in April, compared to March.

In Conclusion

Both companies reported outstanding quarterly beats in the last quarter. Considering the uptick in website traffic trends, it seems that both Tapestry and Lovesac might exceed upcoming quarterly expectations. Given the growth expected and the stocks’ current lows, both Tapestry and Lovesac could offer an attractive investment opportunity at current levels.

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