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5 E-commerce Stocks to Buy Right Now Amid Coronavirus Woes
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The e-commerce industry continues to gain strong momentum amid the coronavirus-hit global scenario on the back of door-to-door delivery services.
Shopping of grocery items, medicines and other essentials online has become a necessity amid the ongoing pandemic owing to social distancing protocol and shelter-in-place restrictions.
Additionally, the aggravating fear of catching the COVID-19 virus is driving online shopping further.
Moreover, the rapidly increasing number of coronavirus cases, increasing health risks and deaths related to the same, along with delay in the launch of COVID-19 vaccination have made people apprehensive, which in turn is leading to growing adoption of e-commerce.
Further, growing proliferation of ultrafast delivery services and solid adoption of online payment applications are constantly aiding growth of the e-commerce market.
The following growth figures are testament to the abovementioned facts.
The Global X E-Commerce ETF (EBIZ) has delivered a robust performance by gaining 47.8% on a year-to-date basis.
Further, the latest data from Adobe Analytics indicates that online sales for August surged 42% on a year-over-year basis in the United States.
Hence, we note that the e-commerce market holds promise and is expected to sustain its boom, thanks to the aforesaid factors, for the rest of 2020.
According to a report from Statista, the global e-commerce market is expected to generate revenues worth $2.4 trillion in 2020. User penetration in this market is projected at 46.6% for 2020.
Further, the fast-paced world has already made e-commerce technology part and parcel of day-to-day lives. In fact, the e-commerce market continues to grow driven by rapid proliferation of smartphones and internet on a global basis.
The same report shows that revenues in this particular space are anticipated to hit $3.3 trillion by 2024, registering a CAGR of 8.2% between 2020 and 2024.
E-commerce giant Amazon (AMZN - Free Report) is leaving no stone unturned to further strengthen the fulfilment network and delivery capabilities for capitalizing on the existing prospects in the online retail space.
Further, given this upbeat scenario, traditional retailers like Walmart (WMT - Free Report) , Target and Kroger, among others, have adopted e-commerce technology. Also, tech companies like Alphabet’s Google and Shopify are also making concerted efforts to rapidly penetrate into this space.
We believe investing in e-commerce stocks amid growing interest in e-commerce by the abovementioned companies in the current pandemic situation is surely enticing.
Our Picks
Investors can tap the potential of the following e-commerce stocks, as these are well poised to capitalize on the existing prospects in the online retail space on the back of strong fundamentals.
JD.com (JD - Free Report) is riding on the JD Retail segment, which is a key catalyst courtesy of robust omni-channel strategy. Moreover, its deepening focus on ensuring supply and fulfilment of essential products to customers during the ongoing pandemic situation remains commendable.
The company’s New Businesses segment is also a major positive. Further, strengthening momentum across JD logistics, Flash Delivery initiative, and supply chain as well as technology capabilities are other tailwinds. Moreover, the integration of AI into JD’s warehouse network is expected to continue facilitating the delivery of direct sales orders.
Stamps.com is gaining from accelerated rate of customer acquisition and increasing shipment volume owing to the COVID-19 outbreak. Additionally, strengthening package volumes are favoring the company.
Further, the ramp up of its United Parcel Services partnership to all platforms is a tailwind. Moreover, the company’s long-term reseller agreement with the U.S. Postal Service, with benefits to higher-volume customers, remains a major positive.
Stamps.com currently sports a Zacks Rank #1. The consensus mark for 2020 earnings is pegged at $8.01 per share, which has moved north by 68.9% over the past 60 days.
Wayfair (W - Free Report) is benefiting from strength in the direct retail business. Further, the expanding active customer base is contributing to top-line growth. Furthermore, the company remains confident about the prospects in U.K. and Germany markets.
We note that it is aggressively investing in international regions in order to bolster presence, which remains a tailwind.
Wayfair currently carries a Zacks Rank #2 (Buy). The consensus mark for 2020 earnings is pegged at $2.83 per share, which improved from a loss of $4.21 per share in the past 60 days.
Groupon (GRPN - Free Report) has been benefiting from restructuring efforts and coronavirus-led e-commerce boom. The company is focusing on higher-margin healthy food offerings, which are likely to drive business growth. Also, its efforts to reduce dependence on goods deals and shifting focus on the local services market are positives.
Further, its recent partnership with Redzy remains noteworthy. It is expected to bolster customer engagement on Groupon Connect, which is its next-generation API that facilitates partners to join the marketplace relatively faster and seamlessly.
Groupon currently carries a Zacks Rank #2. The consensus mark for 2020 narrowed from a loss of $5.16 to a loss of $3.99 per share in the past 60 days.
Fiverr International’s (FVRR - Free Report) platform — which connects people offering logo, poster and brochure designing, photoshop editing, content marketing, web analytics, translation, as well as other services with people outsourcing such work to freelancers — remains a major positive due to increasing remote working trend on account of the coronavirus pandemic.
Furthermore, the launch of four industry stores — Gaming, E-commerce, Architecture and Politics — is expected to aid the company in expanding catalog and gaining momentum across larger businesses. Also, its accelerated AI efforts through personalization and customer support are likely to drive sales in the near term.
Additionally, the company’s focus on international expansion is a tailwind. Expansion of its global marketplace to two new languages — French and Spanish — is a positive.
Fiverr currently carries a Zacks Rank #2. The consensus mark for 2020 earnings is pegged at 21 cents per share, which has been revised from a loss of 31 cents in the past 60 days.
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Shutterstock
5 E-commerce Stocks to Buy Right Now Amid Coronavirus Woes
The e-commerce industry continues to gain strong momentum amid the coronavirus-hit global scenario on the back of door-to-door delivery services.
Shopping of grocery items, medicines and other essentials online has become a necessity amid the ongoing pandemic owing to social distancing protocol and shelter-in-place restrictions.
Additionally, the aggravating fear of catching the COVID-19 virus is driving online shopping further.
Moreover, the rapidly increasing number of coronavirus cases, increasing health risks and deaths related to the same, along with delay in the launch of COVID-19 vaccination have made people apprehensive, which in turn is leading to growing adoption of e-commerce.
Further, growing proliferation of ultrafast delivery services and solid adoption of online payment applications are constantly aiding growth of the e-commerce market.
The following growth figures are testament to the abovementioned facts.
The Global X E-Commerce ETF (EBIZ) has delivered a robust performance by gaining 47.8% on a year-to-date basis.
Further, the latest data from Adobe Analytics indicates that online sales for August surged 42% on a year-over-year basis in the United States.
Hence, we note that the e-commerce market holds promise and is expected to sustain its boom, thanks to the aforesaid factors, for the rest of 2020.
According to a report from Statista, the global e-commerce market is expected to generate revenues worth $2.4 trillion in 2020. User penetration in this market is projected at 46.6% for 2020.
Further, the fast-paced world has already made e-commerce technology part and parcel of day-to-day lives. In fact, the e-commerce market continues to grow driven by rapid proliferation of smartphones and internet on a global basis.
The same report shows that revenues in this particular space are anticipated to hit $3.3 trillion by 2024, registering a CAGR of 8.2% between 2020 and 2024.
E-commerce giant Amazon (AMZN - Free Report) is leaving no stone unturned to further strengthen the fulfilment network and delivery capabilities for capitalizing on the existing prospects in the online retail space.
Further, given this upbeat scenario, traditional retailers like Walmart (WMT - Free Report) , Target and Kroger, among others, have adopted e-commerce technology. Also, tech companies like Alphabet’s Google and Shopify are also making concerted efforts to rapidly penetrate into this space.
We believe investing in e-commerce stocks amid growing interest in e-commerce by the abovementioned companies in the current pandemic situation is surely enticing.
Our Picks
Investors can tap the potential of the following e-commerce stocks, as these are well poised to capitalize on the existing prospects in the online retail space on the back of strong fundamentals.
JD.com (JD - Free Report) is riding on the JD Retail segment, which is a key catalyst courtesy of robust omni-channel strategy. Moreover, its deepening focus on ensuring supply and fulfilment of essential products to customers during the ongoing pandemic situation remains commendable.
The company’s New Businesses segment is also a major positive. Further, strengthening momentum across JD logistics, Flash Delivery initiative, and supply chain as well as technology capabilities are other tailwinds. Moreover, the integration of AI into JD’s warehouse network is expected to continue facilitating the delivery of direct sales orders.
JD.com currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for 2020 earnings has been revised upward by 20.8% in the past 60 days to $1.51 per share.
JD.com, Inc. Price and Consensus
JD.com, Inc. price-consensus-chart | JD.com, Inc. Quote
Stamps.com is gaining from accelerated rate of customer acquisition and increasing shipment volume owing to the COVID-19 outbreak. Additionally, strengthening package volumes are favoring the company.
Further, the ramp up of its United Parcel Services partnership to all platforms is a tailwind. Moreover, the company’s long-term reseller agreement with the U.S. Postal Service, with benefits to higher-volume customers, remains a major positive.
Stamps.com currently sports a Zacks Rank #1. The consensus mark for 2020 earnings is pegged at $8.01 per share, which has moved north by 68.9% over the past 60 days.
Stamps.com Inc. Price and Consensus
Stamps.com Inc. price-consensus-chart | Stamps.com Inc. Quote
Wayfair (W - Free Report) is benefiting from strength in the direct retail business. Further, the expanding active customer base is contributing to top-line growth. Furthermore, the company remains confident about the prospects in U.K. and Germany markets.
We note that it is aggressively investing in international regions in order to bolster presence, which remains a tailwind.
Wayfair currently carries a Zacks Rank #2 (Buy). The consensus mark for 2020 earnings is pegged at $2.83 per share, which improved from a loss of $4.21 per share in the past 60 days.
Wayfair Inc. Price and Consensus
Wayfair Inc. price-consensus-chart | Wayfair Inc. Quote
Groupon (GRPN - Free Report) has been benefiting from restructuring efforts and coronavirus-led e-commerce boom. The company is focusing on higher-margin healthy food offerings, which are likely to drive business growth. Also, its efforts to reduce dependence on goods deals and shifting focus on the local services market are positives.
Further, its recent partnership with Redzy remains noteworthy. It is expected to bolster customer engagement on Groupon Connect, which is its next-generation API that facilitates partners to join the marketplace relatively faster and seamlessly.
Groupon currently carries a Zacks Rank #2. The consensus mark for 2020 narrowed from a loss of $5.16 to a loss of $3.99 per share in the past 60 days.
Groupon, Inc. Price and Consensus
Groupon, Inc. price-consensus-chart | Groupon, Inc. Quote
Fiverr International’s (FVRR - Free Report) platform — which connects people offering logo, poster and brochure designing, photoshop editing, content marketing, web analytics, translation, as well as other services with people outsourcing such work to freelancers — remains a major positive due to increasing remote working trend on account of the coronavirus pandemic.
Furthermore, the launch of four industry stores — Gaming, E-commerce, Architecture and Politics — is expected to aid the company in expanding catalog and gaining momentum across larger businesses. Also, its accelerated AI efforts through personalization and customer support are likely to drive sales in the near term.
Additionally, the company’s focus on international expansion is a tailwind. Expansion of its global marketplace to two new languages — French and Spanish — is a positive.
Fiverr currently carries a Zacks Rank #2. The consensus mark for 2020 earnings is pegged at 21 cents per share, which has been revised from a loss of 31 cents in the past 60 days.
Fiverr International Lt. Price and Consensus
Fiverr International Lt. price-consensus-chart | Fiverr International Lt. Quote
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>