Website Traffic
How to Use the Website Traffic Chart in Your Investment Strategy
Have you ever wondered how a company’s website traffic can be used to formulate an investment plan? Website traffic is akin to a retail store’s footfall. It measures the number of visitors to a company’s website, including both regular and unique customers, to gauge the popularity of the company’s products and services. By studying the website traffic trends, you can gauge whether a company’s stock is poised for an upward/downward trajectory. The chart is particularly important to study, ahead of a company’s earnings release.
TipRanks gathers the website traffic data of publicly traded companies from SEMrush and presents it in an easy-to-understand chart. You can analyze the website traffic of a company for the past 18 Months or the last Six Quarters, as you choose. To open the Website Traffic page on TipRanks, open the company which you wish to study, and on the navigation bar on the left, click on the Stock Analysis tool. As you scroll down the page, click on Detailed Usage Analysis under the Product Insights tool to see the company’s Website Traffic page.
By default, the page will display the monthly website traffic trend for the company. Below the chart, there are four different tabs, which you can toggle to study the company’s trends as per your requirement. For one, you can select which domains are relevant to your study from the dropdown window under the Domains tab. Similarly, you can select the geographical Location for the study from various options, namely Global, U.S., U.K., Global Non-U.S., etc. Next, you can select the types of Devices for which you want to study the website traffic; these include Mobile, Desktop, or All Devices. And lastly, you can choose to study only the Unique Visitors or Total Estimated Visits during the period.
By hovering over the line graph in the Monthly Chart, you can see details of the website traffic for that month, the prior month, desktop and mobile visit figures, and the price change for the month. Meanwhile, when you hover over the line graph in the Quarterly Chart, you can see the details of the website traffic for that quarter, the prior quarter, desktop and mobile visit figures, and the price change for the quarter.
Furthermore, for both the monthly and quarterly figures, you can choose to Compare to Traffic from Last Year. This means the data will be shown for the specific month vis-à-vis the comparative prior-year month. Also, in the quarterly chart, the data will be displayed for the specific quarter vis-à-vis the comparative prior-year quarter. Additionally, you can choose to see a line graph of the Stock Price movement alongside the website traffic trends. This helps you to study how the stock price has behaved when the website traffic is rising or falling in a particular period.
What’s more, TipRanks gives you a description of the trend analysis of the chart right below it. The data shows you, in bulleted format, the website traffic trends for the latest completed quarter compared to the same quarter last year and compared to the previous quarter, as well as a year-to-date comparison to the same period last year.
The most interesting part of the chart is the data for the Unreported Period, which is the quarter for which results are yet to be reported. The website traffic data for the unreported period will help you to gauge whether the company’s results will be positive. For example, an e-commerce company’s website traffic trends portray the popularity and usability of the company’s website and demand for its products and thus, can be predictive of the company’s earnings results. An inclining trend projects positive demand momentum, and vice versa for a declining trend. You can use this data to strategically decide whether to invest in a company or not.
How to Use the Website Growth and User Geography Charts in Your Investment Strategy
On the Website Traffic Page below the Website Traffic Chart, you will find the Website Growth data that can be used to study how the website traffic has behaved over a specific period. This data has similar tabs to the chart and allows you to choose which data you want to study, namely, Domains, Location, Devices, and Visitors. Plus, you can choose whether you want to study the website traffic data compared to the Same Period Last Year or the Previous Period.
TipRanks will display the results as per the options you select under the various tabs. The main data will be displayed under three main parts: Monthly Growth of the most recently completed month, Quarter-to-Date Growth of the most recently completed quarter, and Year-to-Date Growth. The data will help you to analyze if the traffic trends are improving or declining over months and allow you to take an informed investment decision.
Right below the Website Growth chart, you will see the User Geography chart. This chart shows you a glimpse of the geographical breakdown of the website traffic globally (U.S., U.K., Germany, India, etc.) for the most recently completed month. You can select the Domains you wish to study, plus you will see the Traffic Share (% of Total Traffic), Traffic (figure in millions), Desktop contribution, and Mobile contribution in percentage terms. Through this chart, you can easily see in which part of the globe the company’s customer growth is improving.
Finally, at the bottom of the page, you will see that we care about our customers’ input. We have included a box titled, “Are We Missing Any Domains?” through which you can suggest any website, company name or ticker for which we have missed detailing the website traffic trends. Through your suggestions, we can improve our offerings and give the customers exactly what they want.
How to Use the Website Traffic Screener, “Top Product Insights Stocks,” in Your Investment Strategy
Now that you are aware of the wonders of website traffic trends, it is time to delve into the list of TipRanks’ Top Product Insights Stocks. The list encompasses publicly traded companies with the highest website traffic increase/decrease over the past month. From the list, you can see changes in website traffic from the previous month and uncover the websites with the top traffic gains per industry. By studying this list, you can strategize about whether the companies in your portfolio have the potential to gain or lose demand momentum, and you can reallocate your portfolio accordingly. Also, you can select companies to invest in by scanning those with increasing website traffic.
To navigate to this page, click on the Website Traffic Screener from the Website Traffic page of any company. Or you can go to Stock Ideas – Top Product Insights Stocks. On this page, you will find two tabs: Top Trending Websites, which shows a list of companies whose website traffic is increasing significantly, and Websites Losing Traffic, which is a list of companies whose website traffic is declining significantly. Please note, this list changes when you toggle between the criteria of Compare to Same Period Last Year and Compare to Previous Period. You can also see the list change if you toggle between companies By Stock (includes all websites) or By Domain. The list is dynamic and keeps changing with time.
The table also presents quarterly and year-to-date changes in website traffic. You can filter the website category to focus on a particular Online Category (industry) from the dropdown list. You can also adjust the type of Visitors (unique or total estimated visits), type of Devices (all, mobile, or desktop), and the number of Monthly Visitors. Additionally, as with all TipRanks tools, you can adjust the country and see the list of publicly traded companies from that country that have gained or lost the most estimated traffic in the past month.
