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Online Grocery Sales Jump in April: 4 Solid Stocks to Buy

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An increasing number of people have been shopping online, particularly necessities, over the past year as the pandemic has forced them to stay at home. This has seen online grocery sales grow at a rapid pace.

According to the latest Brick Meets Click/Mercatus Grocery Shopping Survey, online grocery sales increased once again in April. Although the vaccination drive is in full swing and restrictions are being eased, people have finally realized the comfort and convenience of shopping online.

Online Grocery Sales Continue to Grow

According to the latest Brick Meets Click/Mercatus Grocery Shopping Survey, online grocery sales jumped 16% in April on a year-over-year basis. Overall grocery sales reached $8.4 billion in April, which is almost four times the pre-pandemic level.

April’s jump came as 67.8 million households ordered groceries online. This marked a 12% decline year over year but that was because consumers placed more orders for pickup and delivery.

Online Grocery Sales to Grow

As the economy further reopens, people will be moving outdoors more confidently but they are likely tocontinue shopping online. Moreover, the coronavirus fears are far from over as a result of which people have time and again been stockpiling on necessary goods. This is helping grocers earn more revenues.

Also, grocers are increasingly shifting focus to pick-up and delivery facilities as people are hesitating to step out of their houses. According to eMarketer, online grocery sales are projected to reach 147.4 million by 2023.

Our Choices

Target Corporation (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 20.3%. The Zacks Consensus Estimate for current-year earnings has improved 31.9% over the past 60 days. Target sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Walmart Inc. (WMT - Free Report) has evolved from just being a traditional brick-and-mortar retailer into an omnichannel player. In this regard, the acquisitions of Bonobos, Moosejaw and Parcel; partnership with Shopify and Goldman Sachs; delivery programs like Walmart + and Express Delivery; and investment in the online e-commerce platform Flipkart are noteworthy. 

The company’s expected earnings growth rate for the current year is 7.1%. The Zacks Consensus Estimate for current-year earnings has improved 7.7% over the past 60 days. Walmart has a Zacks Rank #2 (Buy).

J & J Snack Foods Corp. (JJSF - Free Report) is an American manufacturer, marketer and distributor of branded niche snack foods and frozen beverages for the food service and retail supermarket industries.

The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 16.8% over the past 60 days. J & J Snack Foods has a Zacks Rank #1.

The Hain Celestial Group, Inc. (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 72.6%. The Zacks Consensus Estimate for current-year earnings has improved 5.8% over the past 60 days. The Hain Celestial Group holds a Zacks Rank #2.

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