The pandemic-ravaged retailer sector is trying to get back on its feet but it will still take some time for it to return to the pre-COVID-19 levels. However, e-commerce has been a saving grace, breathing life into the jolted space.
However, it’s not grocery and essential goods that have been driving e-commerce sales. Consumer electronics and computers have seen astounding sales growth over the past few months, and have acted as the drivers of e-commerce. According to a new report from e-marketer, electronics will dominate e-commerce sales in the days to come.
Consumer Electronics, Computers Boost E-commerce Sales
According to a new report from e-marketer, retail e-commerce sales in the United States will reach $709.78 billion this year, up 18% from 2019. Even before the pandemic, buying computer and consumer electronics online was a trend. That product category will represent the largest share of U.S. retail e-commerce sales in 2020, at 22%.
Per the report, U.S. computer and consumer electronics e-commerce sales will total $156.5 billion this year and nearly half of the products sold in this category overall (49.5%) will be purchased online.
Computing Products, Consumer Electronics Power Digital Ads
Computing products and consumer electronics account for the bulk of digital ad-spending by tech companies. Business-to-consumer (B2C) companies like Apple, Inc. (AAPL - Free Report) Dell Technologies Inc. (DELL - Free Report) , Samsung Electronics Co (SSNLF - Free Report) and Sony Corporation (SNE - Free Report) fall into this category, as do B2B service providers like Adobe Systems Inc. (ADBE - Free Report) , Cisco Systems, Inc. (CSCO - Free Report) , International Business Machines Corporation (IBM - Free Report) , Microsoft Corporation (MSFT - Free Report) and other IT firms. Also included are Internet, cloud and software solutions providers like Salesforce, Inc. (CRM - Free Report) , Shopify, Inc. SHOP and Zoom Video Communications, Inc. ZM.
According to e-marketer, computing products and consumer electronics companies will spend $11.64 billion on digital ads in 2020, up 18.0% from 2019. This represents the fastest growth in digital ad spend across all industries in 2020. By contrast, total U.S. digital ad spend will grow just 1.7% this year.
The domestic economy has started reopening but the government is still struggling to contain the spread of the pandemic. Safety measures like at-home orders and strict social distancing will continue for at least a few more months now. Consumer electronic goods were drivers of e-commerce sales earlier and are expected to continue playing this role in the long term. Given this situation, it might be prudent to invest in the following consumer electronic stocks.
Best Buy Co., Inc. (BBY - Free Report) is a multinational specialty retailer of consumer electronics, home office products, entertainment software, communication, food preparation, wellness, health, security, appliances and related services.
The company’s expected earnings growth rate for the current year is 17.3%. The Zacks Consensus Estimate for current-year earnings has improved 22.8% over the past 30 days. Best Buy has a Zacks Rank #2 (Buy).
Apple Inc. primarily runs around its flagship iPhone. Moreover, non-iPhone devices like Apple Watch and AirPod have gained significant traction. In fact, Apple dominates the Wearables and Hearables markets due to the growing adoption of Watch and AirPods.
The company’s expected earnings growth rate for the current year is 9.1%. The Zacks Consensus Estimate for current-year earnings has improved 5.2% over the past 60 days. Apple carries a Zacks Rank #2.
Aarons, Inc. (AAN - Free Report) deals in sales and lease ownership, apart from specialty retailing in furniture, home appliances, consumer electronics, as well as accessories. Furthermore, the company has three operating and reportable segments: Progressive Leasing, Aaron's Business and DAMI.
The company’s expected earnings growth rate for the current year is 17.5%. The Zacks Consensus Estimate for current-year earnings has improved 24.5% over the past 30 days. Aarons sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Systemax Inc. (SYX - Free Report) is a direct marketer of brand name and private label products, including personal desktop computers, notebook computers, computer-related products and industrial products, in North America and Europe.
The company’s expected earnings growth rate for next year is 11.9%. The Zacks Consensus Estimate for current-year earnings has improved 21.8% over the past 60 days. Systemaxcarries a Zacks Rank #2.
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