The retail sector is trying to bounce back on its feet with apt support from e-commerce after taking a bad hit due to the pandemic. And it seems that e-commerce is trying not only to breathe life into the retail sector but also give it the due momentum. A proof of that was the record sales generated on Cyber Monday.
Adobe Analytics, e-commerce set a new revenue record on Cyber Monday making it the largest online shopping day ever in U.S. history. One of the biggest reasons behind this was growing fears of coronavirus that kept people at home this Thanksgiving and Black Friday, and shop online. Biggest Shopping Day Ever
According to data from Adobe Analytics, people spent a whopping $10.8 billion, up 15.1% year over year, shopping online on Cyber Monday, making it the single-largest shopping day ever. However, Adobe Analytics had projected $12.7 billion worth of shopping on Cyber Monday.
This year’s surge was backed by gift buying, which started quite early as retailers unveiled deals and offers to avoid people from crowing stores due to the pandemic.
E-Commerce Proving Its Dominance
Although visiting physical stores during the holiday season has been the tradition, e-commerce has slowly been finding its place. This year proved to be a landmark for online shopping. Thanks to the pandemic, people were compelled to stay at home and shop online.
Majority of the customers used smartphones to shop this year as an increasing number of retailers are investing in mobile apps and offering bigger and better deals there. According to Adobe Analytics, 37% of the total online shopping was done on smartphones on Cyber Monday.
Moreover curbside pickup, which jumped 30% from the year ago, played a key role in giving e-commerce a boost. The major success of e-commerce on Cyber Monday comes on the back of robust online sales on Black Friday and Thanksgiving.
This year, Black Friday generated $9 billion in online sales, up 21.6% year over year. A total of $5.1 billion was spent online on Thanksgiving, marking an increase of 21.5% year over year.
Given the lingering virus fears, online shopping will continue to be a safe bet till a vaccine is widely available. This is thus the right opportunity to invest in retail stocks that have a strong online presence.
Target Corporation ( TGT Quick Quote TGT - Free Report) 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 the current year is 35.5%. The Zacks Consensus Estimate for current-year earnings has improved 21.1% over the past 60 days. Target carries a Zacks Rank #2.
Overstock.com, Inc. ( OSTK Quick Quote OSTK - Free Report) is primarily an e-commerce service provider. The company sells its broad range of price-competitive products, including furniture, home decor, bedding and bath, and houseware through its www.overstock.com, www.o.co and www.o.biz websites.
The company’s expected earnings growth rate for next year is 1.8%. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the past 60 days. Overstock has a Zacks Rank #2.
L Brands, Inc. ( LB Quick Quote LB - Free Report) evolved from an apparel-based specialty retailer to a segment leader focused on women’s intimate and other apparel, personal care, beauty and home fragrance products.
The company’s expected earnings growth rate for next year is 0.4%. The Zacks Consensus Estimate for current-year earnings has improved 96.6% over the past 60 days. L Brands sports a Zacks Rank #1.
DICKS Sporting Goods, Inc. ( DKS Quick Quote DKS - Free Report) operates as a major omni-channel sporting goods retailer, offering athletic shoes, apparel, accessories and a broad selection of outdoor and athletic equipment such as for team sports, fitness, camping, fishing, tennis, golf and water sports.
The company’s expected earnings growth rate for the current year is 58.5%. The Zacks Consensus Estimate for current-year earnings has improved 49.2% over the past 60 days. Dicks Sporting sports a Zacks Rank #1.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>