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The Internet industry is experiencing significant growth due to rapid growth in global Internet penetration and rapid digitization across multiple sectors, increasing the demand for Internet-based solutions. Therefore, investors may consider buying top internet stocks Angi (ANGI), Upwork (UPWK), and SimilarWeb (SMWB) for big gains this month. read more.
The Internet industry is experiencing significant growth due to increased use of the Internet around the world and continued technological innovation. Digital transformation is driving demand for Internet-based services as businesses, governments, and individuals adopt digital technologies in communications, commerce, entertainment, education, healthcare, and more.
Considering these factors, it may be wise to invest in fundamentally sound Internet stocks. Angi Inc.Angi), Upwork Co., Ltd. (UPWK), Similar Web Co., Ltd. (SMWB), heading for solid gains this month.
Among the world’s largest online markets, the United States ranks third with more than 311 million internet users nationwide. A global center of innovation and home to some of the world’s largest internet companies, the United States has been growing its digital population for more than two decades.
Additionally, mobile internet usage is expected to skyrocket, with approximately 295 million users accounting for more than 45% of web traffic by 2023, while social media usage is expected to increase. Over 342 million users by 2029Facebook leads the market share.
Additionally, technological advances, including the development of high-speed internet connections such as broadband and mobile internet (3G, 4G, and now 5G), have made it easier to access high-speed internet from multiple devices such as smartphones and computers. Ta. His 5G service market in the world is Reach $664.75 billion by 2028showing a CAGR of 26.9%.
In particular, the proliferation of the Internet and rapid digitalization has led to a significant increase in online activities such as remote work, e-learning and online education, telemedicine, video streaming, digital banking, and online shopping. This has created even greater opportunities for companies providing Internet-based services and solutions.
The e-commerce market is expected to reach a total value of $18.81 trillion by 2029. Growing at a CAGR of 15.8% During the forecast period (2024-2029). Meanwhile, iBe’s analysis predicts that online marketplaces will: Revenue will exceed $7 trillion by 2024.
With these encouraging trends in mind, let’s take a look at the fundamentals of three internet stocks: ANGI, UPWK, and SMWB.
Ange Co., Ltd. (Angi)
ANGI provides consumers with tools and resources matched by independently established home service professionals in the United States and abroad. The company operates through its three segments: advertising and leads. service; and international.
ANGI’s trailing twelve month gross profit margin of 95.43% was 93.2% higher than the industry average of 49.39%. Additionally, the company’s trailing 12-month asset turnover ratio was 0.72x, which is 50.5% higher than the industry average of 0.48x.
The company’s future EV/Sales ratio of 1.12x is 40.6% lower than the industry average of 1.88x. Similarly, the company’s forward price-sales multiple of 0.96 is 23.3% lower than the industry average of 1.25.
For the fourth quarter ended December 31, 2023, ANGI reported revenue of $300.43 million and gross profit of $283.19 million.Company’s Operating income Operating income was $7.63 million, compared to an operating loss of $28.2 million in the same period last year.
Additionally, the company’s cash and cash equivalents were $364.04 million as of December 31, 2023, compared to $321.16 million as of December 31, 2022.
Analysts expect ANGI’s fiscal year (ending December 2025) revenue to be $1.32 billion, up 6% from a year ago. Street expects the company to report EPS of $0.06 for the year. Additionally, ANGI has exceeded consensus EPS estimates in 3 of his subsequent 4 quarters, which is great.
ANGI stock has soared 21.2% over the past six months, closing at $2.29.
Angi-san power rating reflects its promising prospects. The stock has an overall rating of “B”, which equates to a “buy” according to our proprietary rating system. POWR ratings are calculated by considering 118 different factors, with each factor weighted to the best degree.
The stock has a B grade for Value and Sentiment. It ranks 12th out of 53 B-rated stocks. internet industry.
In addition to the above, we also evaluated ANGI on quality, growth, stability, and momentum.Get all ANGI ratings here.
Upwork Co., Ltd. (UPWK)
UPWK operates a job marketplace that connects businesses with a variety of independent professionals and agencies in the United States, India, the Philippines, and abroad. The company’s marketplace products include Upwork Payroll and Upwork Enterprise, in addition to managed and escrow services.
On December 5, 2023, UPWK announced the first of many partnerships with vendor management systems (VMS) and managed service providers (MSPs) for its Enterprise Suite products. SAP Fieldglass and Flextrack partnered with UPWK to provide a more comprehensive and unified approach to employee management.
Additionally, Upwork has developed a variety of integrations and accessible APIs to enhance the functionality of Upwork Enterprise Suite across a company’s employee ecosystem. These partnerships and integrations enable Upwork Enterprise customers to streamline, scale, and optimize their workforces.
UPWK’s trailing twelve month gross margin was 75.27%, which was 145% higher than the industry average of 30.72%. Additionally, the company’s net profit margin for the trailing 12 months was 6.80%, which is 15% higher than the industry average of 5.91%. His ROCE over the past 12 months was 14.89%, which is 24.1% higher than the industry average of 12%.
UPWK’s total revenue for the fourth quarter ended December 31, 2023 increased 13.9% year over year to $183.93 million. Gross profit increased 14.8% year-on-year to $138.07 million. Also, his net income was $17.37 million (in the same period last year he had a loss of $16.5 million).
Additionally, UPWK had net income per share of $0.13. In comparison, in the same quarter of 2022, he lost $0.13.
Analysts expect UPWK’s revenue and EPS for the fiscal year ending March 2024 to be $773.39 million and $0.79, up 12.2% and 52.7% from the previous year, respectively. Additionally, the company has exceeded consensus revenue and EPS estimates in each of his four subsequent quarters, which is noteworthy.
Additionally, the company’s revenue and EPS for fiscal year 2025 are expected to be $870.13 million and $0.97, up 12.5% and 22.1% year over year, respectively.
UPWK stock has increased 30.7% over the past nine months, closing at $11.93.
UPWK’s POWR rating reflects a positive outlook. The stock has an overall rating of B, which equates to a Buy according to our proprietary rating system.
UPWK’s Growth rating is B. Ranked 6th out of 28 stocks. Internet – Services industry.
In addition to the POWR Rating highlighted above, you can access UPWK’s ratings for Value, Momentum, Sentiment, Quality, and Stability. here.
Similar Web Co., Ltd. (SMWB)
Headquartered in Givatayim, Israel, SMWB provides a platform for digital intelligence in the US, Europe, Asia Pacific, UK, Israel, and internationally. We provide digital research intelligence solutions that enable senior leadership, strategy, business intelligence, and consumer insights teams to benchmark their performance against competitors and market leaders.
On March 4, 2024, SMWB completed its acquisition of Admetricks, a developer of powerful advertising intelligence software that will become the core of a new lookalike web advertising intelligence product. Admetricks furthers his SMWB mission to provide the most comprehensive data, analytics and optimization tools for digital marketing and advertising.
SMWB’s trailing twelve month gross margin was 78.40%, which was 62% higher than the industry average of 48.41%. Additionally, the company’s trailing 12-month asset turnover ratio was 0.90x, which is 46.1% higher than the industry average of 0.62x.
SMWB’s future EV/Sales of 2.78x is 2.3% lower than the industry average of 2.84x. Similarly, the stock’s forward price/sales ratio of 2.80x is 3.2% lower than the industry average of 2.89x.
For the fourth quarter ended December 31, 2023, SMWB had 4,712 customers, an increase of 16% year over year. As a result, revenue increased 10.5% year over year to $56.76 million. Non-GAAP gross profit was $46.19 million, an increase of 14.5% year over year.
Additionally, the company reported non-GAAP operating income of $4.75 million, compared to an operating loss of $10.9 million in the year-ago period.
Analysts expect SMWB’s sales for the fiscal year ending December 2024 to be $244.69 million, up 12.2% from the previous year. In fiscal 2025, the company’s revenue and EPS are expected to increase 14.2% and 97.6% year over year to $279.45. $1 million and $0.18, respectively.
Additionally, the company beat consensus EPS estimates in each of the trailing four quarters, which is noteworthy.
SMWB stock has increased 61.9% over the past three months, closing at $8.74.
SMWB’s strong fundamentals are reflected in its POWR Rating. The overall rating is A, which equates to a “strong buy” according to our own rating system.
SMWB has an A grade for sentiment and a B grade for growth and quality. It ranked first among 28 stocks in the Internet services industry.
click here Access additional SMWB ratings (Value, Stability, Momentum).
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ANGI stock was unchanged in premarket trading Friday. Year-to-date, ANGI has fallen -8.03%. In comparison, the benchmark S&P 500 index rose 8.28% during the same period.
About the author: Nidhi Agarwal
Nidhi has a passion for capital markets and asset management, which led her to pursue a career as an investment analyst. She has a bachelor’s degree in finance and marketing and is in the CFA program. Her fundamental approach to stock analysis helps investors identify the best investment opportunities.
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