tiprankstipranks
Chegg Stock: Virtual Visits Spike Globally in February, What can it Signify?
Stock Analysis & Ideas

Chegg Stock: Virtual Visits Spike Globally in February, What can it Signify?

Chegg, Inc. (CHGG) is a rapidly expanding e-learning services provider. The corporation drew a lot of attention during the COVID-19 pandemic, but over the past year, its shares have dropped about 67% in value due in part to the economic reopening.

However, the more recent Q4 figures provided some relief to investors. Chegg’s revenues in the fourth quarter were $207.5 million, up 1% year-over-year. It substantially surpassed the average projection of $195.2 million. In addition, Chegg Services members climbed by 5% year-over-year to 4.6 million.

Surprisingly, the new TipRanks monthly website visitor statistic had already indicated that Chegg would post decent fourth-quarter sales and subscriber numbers. Furthermore, according to the website data tool, Chegg appears to be maintaining its growth momentum even after the release of its earnings data.

What User Visit Details Show Us

The tool revealed that the statistics for chegg.com for the month of February showed a clear upward trend. According to the graph below, the total expected website visitors to chegg.com increased by about 75% to 98 million in February, up from 56 million in January.

What does the Rising Trend Indicate?

Chegg appears to be well-positioned to make a recovery after losing value in its stock over the last year. In the month of February, the company observed a considerable increase in monthly visitors, possibly signifying a elevated broad interest its e-learning platform.

Moreover, the company exists in a considerably expanding industry space. According to research firm MarketsAndMarkets, the global digital education market is predicted to rise to $46.7 billion from $11.5 billion from 2021 to 2026. This would represent a Compound Annual Growth Rate (CAGR) of 32.3% over the five year period.

Given the huge potential market opportunity for digital education, Chegg has a tremendous runway for expansion in the long term.

Chegg also has a lot of potential for worldwide expansion. The firm’s acquisition of Busuu, an online language learning platform, broadens its demographic target and expands its footprint, while also making the platform more comprehensive.

Based on the above context, Chegg appears to be a fundamentally sound firm that might be a great long-term growth stock to own. The company’s subscriber growth could accelerate in the coming years, boosting Chegg’s top and bottom lines.

Wall Street’s Take

Wall Street analysts are cautiously optimistic on Chegg, resulting with a Moderate Buy consensus rating based on six Buys and six Holds. The average Chegg stock prediction of $41.55 implies upside potential of approximately 38% from current levels.

Download the TipRanks mobile app now.

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Read full Disclaimer & Disclosure

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles