The coronavirus pandemic has left the retail industry battered. However, not all segments have been impacted. E-commerce has somewhat been breathing life into the sector, which has seen online grocery sales surging during the pandemic as most people have been shopped online for necessities.
Given that there is no sign of the coronavirus subsiding, e-commerce is likely to play a major role in the coming days too. People will continue to shop for necessities like grocery and rely on ecommerce.
Online Grocery Sales Poised to Grow
Online sales have been on the rise since the coronavirus outbreak. According to
E-grocery market, the online grocery market in the United States was estimated at $30.9 billion in 2019, which saw astounding growth over the past year.
The online grocery market is now expected to reach $114,923.8 million by 2026 at a CAGR of 19% from 2019 to 2027. Another reason behind the jump in online grocery sales during the pandemic was that many retailers started offering curbside pickup facilities. This helped people in ordering online and then picking up the grocery in person.
Coronavirus Driving Online Sales
Although online grocery sales somewhat declined in December, it is likely to bounce back following the announcement of a fresh round of stimulus that is going to boost the purchasing power of consumers. Moreover surging cases of coronavirus, which experts predict will only worsen over the coming two months, has compelled people to stay indoors.
Also, many who are hesitant to shop at a physical store but at the same time don’t want to buy certain grocery items online have been going for curbside pickup, which is driving e-commerce sales further. Hence, online shopping will remain the preferred choice for most despite the rollout of the COVID-19 vaccine.
Although vaccines are being rolled out, fears have once again started gripping millions as new cases of coronavirus continue to surge. Preventive measures to keep the virus at bay are likely to see people ordering for all household necessities, including grocery, online. Given this situation, it would be prudent to watch out for these four stocks that are likely to rally on a sharp rise in demand for online grocery in the near future.
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 42.1%. The Zacks Consensus Estimate for current-year earnings has improved 12.6% over the past 30 days. Target carries a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Hain Celestial Group, Inc. ( HAIN Quick Quote HAIN - Free Report) offers a wide range of popular better-for-you groceries, snacks and tea.
The company’s expected earnings growth rate for the current year is 51.2%. The Zacks Consensus Estimate for current-year earnings has improved 1.6% over the past 60 days. The Hain Celestial Group holds a Zacks Rank #2.
BG Foods, Inc. ( BGS Quick Quote BGS - Free Report) manufactures, sells and distributes a portfolio of shelf-stable and frozen foods, and household products in the United States, Canada and Puerto Rico. Its products include frozen and canned vegetables, oatmeal and hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegars, maple syrups and a range of other products.
The company’s expected earnings growth rate for the current year is 43.3%. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the past 60 days. BG Foods sports a Zacks Rank #1.
Nestle SA ( NSRGY Quick Quote NSRGY - Free Report) the world leader in coffee (Nescafe), mineral water (Perrier), and ophthalmology products. Among its more than 8,500 products are Alpo dog food, Baby Ruth and Butterfinger candy bars, Carnation evaporated and condensed milk, Coffee-Mate coffee creamer, Kix breakfast cereals, Nestle Quik chocolate drink mix, Stouffer's frozen dinners, and Toll House morsels.
The company’s expected earnings growth rate for the current year is 12.6%. The Zacks Consensus Estimate for current-year earnings has improved 1.2% over the past 60 days. Nestle currently has a Zacks Rank #2.
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