These "Cheap" Internet Stocks Could Keep Soaring

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a day ago

The Russell 2000 had a nice spike on Tuesday, rising +1% as small-cap stocks continued to benefit from what has been the fastest stock market rebound in history since experiencing a correction of more than 10% in March.
Exiting a very favorable Q2 for stocks, many of the underperformers are drawing investors' attention, along with other names that still have 'cheap' price tags. This leads us to discussing several top-rated internet stocks that fit this scenario and appear to be poised for more upside.
Among the top-rated Zacks Internet-Software Industry, Bumble BMBL and Creative Realities CREX are two stocks to watch with a Zacks Rank #2 (Buy) and a Zacks Rank #1 (Strong Buy), respectively. Furthermore, the Zacks Internet-Software Industry is currently in the top 16% of over 240 Zacks industries.
Bumble stock has rebounded and climbed more than +50% over the last three months but is still more than 30% from its 52-week high of $10 a share. Operating two of the world's highest-grossing dating apps (Badoo & Bumble), Bumble looks extremely undervalued and is already profitable after going public in 2021. Trading at just 7X forward earnings, Bumble is expecting high-double-digit EPS growth in fiscal 2025 and 10% EPS growth in FY26.
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Meanwhile, Creative Realities is emerging as a leading marketing technologies company that provides a range of marketing technology solutions to its customers through its suite of software applications. At just $3 a share, Creative Realties' stock has also surged over +50% in the last three months.
Expected to cross the profitability line this year after posting an adjusted loss of -$0.34 a share in 2024, Creative Realities stock trades at a very attractive 7X forward P/E multiple as well. Furthermore, the company's steady top-line growth alludes to its future earnings potential, with total sales expected to rise 10% in FY25 and projected to increase another 13% in FY26 to $63.3 million.
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Ride-sharing leader Lyft LYFT doesn't need quite the introduction as the other names on the list, and its stock sports a Zacks Rank #2 (Buy) along with Crexendo CXDO, another intriguing internet services company that provides communication platform software solutions and collaboration services for call centers. Both have posted +20% gains in the last three months and are expecting over 10% growth on their top and bottom lines in FY25 and FY26.
Most intriguing, Lyft shares still trade under $20 and at 14.3X forward earnings, with Crexendo stock trading at $6 and a reasonable 21.3X P/E multiple considering its growth.
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Posting very pleasant gains amid the stock market's historic rebound, the extended rally in these top-rated internet stocks could continue. Echoing this sentiment, the risk-to-reward has remained favorable to invest in Bumble, Creative Realities, Lyft, and Crexendo.
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Creative Realities, Inc. (CREX) : Free Stock Analysis Report
Bumble Inc. (BMBL) : Free Stock Analysis Report
Crexendo Inc. (CXDO) : Free Stock Analysis Report
Lyft, Inc. (LYFT) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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