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The Zacks Analyst Blog Highlights: Best Buy, Carvana, Target and Kroger

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For Immediate Release

Chicago, IL – November 10, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Best Buy Co., Inc. (BBY - Free Report) , Carvana Co. (CVNA - Free Report) , Target Corporation (TGT - Free Report) and The Kroger Co. (KR - Free Report) .

Here are highlights from Monday’s Analyst Blog:

E-Commerce Set to Rule Holiday Sales: 4 Winners

Retailers are still not sure how the holiday season is going to shape up for them given that the sector has taken a massive beating from the coronavirus outbreak. Although retail sales have been on the rise since the economy started reopening, it still has a long way to go to match the year-ago levels. However, the pandemic has seen an increasing number of people relying on online shopping, which has been a savior for the retail sector.

Per a new report from Adobe Analytics, e-commerce will once again play a major role in giving retail sales a boost this holiday season.

E-Commerce to Boost Holiday Sales

The Adobe Analytics report projects record high online sales of more than $189 billion on a 33% year-over-year jump. The report also says that a fresh round of stimulus could further push online sales by $11 billion, thus taking the total to more than $200 billion. This implies a 47% year-over-year surge.

Moreover, Black Friday online sales are projected at $10.3 billion, or 33% from the year-ago period, while Cyber Monday could witness $12.7 billion in sales, implying an increase of 35% year over year. Also, Thanksgiving online sales projection is $6 billion. Adobe Analytics further says that between Nov 1-22 and Dec 4-18, online sales are expected to touch $2 billion every day.

Smartphone Users to Surge

The coronavirus pandemic has already seen millions shifting to online shopping on concerns of safety. Smartphones have become the most convenient medium to shop and pay online. Per the Adobe Analytics report, the holiday season will see more people using smartphones to make purchases. Around 42% of the shopping will be done through smartphones.

Also, $28 billion more will be spent on smartphones compared to last year. Interestingly, small retailers will gain prominence over the big names. Around 38% of the buyers will try to shop at smaller retailers throughout the holiday season.

Our Choices

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 so long there isn’t a definite cure for the virus. Hence, more people will rely on online shopping. Given this situation, it might be prudent to invest in the following four e-commerce stocks.

Best Buy 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 next year is 18%. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the past 60 days. Best Buy has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Carvana is a leading e-commerce platform for buying and selling used cars. Carvana’s end-to-end online business model that covers every aspect of used-car retailing — including sales, financing, logistics, inspection and repair centers, as well as software development — has transformed traditional used-car sales in several ways.

The company’s expected earnings growth rate for next year is 5.2%. Its shares have advanced 9.4% in the past three months. Carvana has a Zacks Rank #2.

Target has evolved from just being a pure brick & mortar retailer to an omni-channel entity. The company has been investing in technologies, improving websites and mobile apps, and modernizing the supply chain to keep pace with the changing retail landscape and better compete with pure e-commerce players.

The company’s expected earnings growth rate for next year is 12.4%. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the past 60 days. Target has a Zacks Rank #2.

The Kroger Co.  operates supermarkets, multi-department stores, marketplace stores and price impact warehouse stores.

The company’s expected earnings growth rate for the current year is 49.1%. The Zacks Consensus Estimate for current-year earnings has improved 15.5% over the past 60 days. Kroger has a Zacks Rank #2.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Target Corporation (TGT) - free report >>

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Carvana Co. (CVNA) - free report >>