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E-Commerce Sales Soar Past $1 Trillion: 4 Solid Stocks to Buy
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The pandemic compelled millions to shop from home, which resulted in an e-commerce boom. Since then, e-commerce has become the most preferred mode of shopping for people as they have realized the convenience and security of shopping online. This has seen e-commerce grow leaps and bounds over the past couple of years.
E-commerce has played a major role in helping the retail sector survive during the pandemic and has since been driving sales amid the challenges of soaring commodity prices. Given this scenario, stocks with a strong online presence, like Dollar General Corporation (DG - Free Report) , Sportsman's Warehouse Holdings, Inc. (SPWH - Free Report) , PC Connection, Inc. (CNXN - Free Report) and Arhaus, Inc. (ARHS - Free Report) , are expected to benefit in the near term.
E-commerce Sales Continue to Soar
According to the Department of Commerce, e-commerce sales in the United States surpassed the $1 trillion mark for the first time to reach $1.02 trillion in the past 12 months. This comes despite soaring commodity prices. Online sales are likely to grow in single digits this year for the first since 2009.
For 2022, online sales growth is projected at 9% as inflationary pressure continues to batter the retail sector. Even then, the retail sector has been doing quite well, with sales still on the rise. E-commerce has been playing a key role in this.
The third quarter has been relatively better for the retail sector. According to the Census Bureau, total retail sales for the quarter came in a $1,792 billion, increasing 0.7% from the prior quarter. Online sales increased 3% month over month and 10.8% year over year to $265.9 billion. E-commerce accounted for 14.8% of the overall third-quarter retail sales.
Although online retail sales are projected to grow in single digits this year, e-commerce expansion has been massive since the COVID-19 outbreak. E-commerce has been making its presence felt for quite some time now, but the pandemic gave it a massive boost as millions shopped from home on fears of contracting the virus and tried to maintain social distancing.
Although people started visiting brick-and-mortar stores as the economy reopened, e-commerce has continued its dominance. In fact, e-commerce spending was earlier projected to hit $1 trillion in 2024 but the target has been achieved this year itself, proving its immense potential.
Needless to say, the market has doubled in size in just three years. E-commerce spending is 25% higher than the pre-pandemic levels. Had the pandemic not struck and the market had grown at the rate of 14-15%, which was happening for years, total sales would have been around $815 billion, smaller by around $200 billion.
Our Choices
Given this scenario, it would be wise to invest in these four stocks with a strong online presence. Each of the stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar General Corporation is one of the largest discount retailers in the United States. DG trades in low-priced merchandise, typically $10 or less. Dollar General offers a wider selection of merchandise, including consumable items, seasonal items, home products and apparel.
Dollar General’s expected earnings growth rate for the current year is 13.8%. Shares of DG have gained 7.7% in the past 30 days. Dollar General Home presently has a Zacks Rank #2.
Sportsman's Warehouse Holdings, Inc. is an outdoor sporting goods retailer. Its stores offer camping products, fishing products, and hunting and shooting products. SPWH stores also provide clothing products, footwear products and optics, electronics, and accessories.
Sportsman's Warehouse’s expected earnings growth rate for next year is 25.2%. The Zacks Consensus Estimate for current-year earnings has improved 3.6% over the past 60 days. SPWHpresently sports a Zacks Rank #1.
Vivint Smart Home, Inc. is a smart home company, operating primarily in North America. VVNT delivers an integrated smart home system with in-home consultation, professional installation and support delivered by its Smart Home Pros, as well as 24/7 customer care and monitoring.
Vivint Smart Home’s expected earnings growth rate for the current year is 70.2%. Shares of VVNT have gained 23.6% in the past 30 days. VVNT presently has a Zacks Rank #2.
Arhaus, Inc. is a lifestyle brand and omni-channel retailer of premium home furnishings. ARHS offers assortment of heirloom quality products.
Arhaus’ expected earnings growth rate for the current year is 21.7%. The Zacks Consensus Estimate for current-year earnings has improved 15.1% over the past 60 days. ARHS presently carries a Zacks Rank #2.
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E-Commerce Sales Soar Past $1 Trillion: 4 Solid Stocks to Buy
The pandemic compelled millions to shop from home, which resulted in an e-commerce boom. Since then, e-commerce has become the most preferred mode of shopping for people as they have realized the convenience and security of shopping online. This has seen e-commerce grow leaps and bounds over the past couple of years.
E-commerce has played a major role in helping the retail sector survive during the pandemic and has since been driving sales amid the challenges of soaring commodity prices. Given this scenario, stocks with a strong online presence, like Dollar General Corporation (DG - Free Report) , Sportsman's Warehouse Holdings, Inc. (SPWH - Free Report) , PC Connection, Inc. (CNXN - Free Report) and Arhaus, Inc. (ARHS - Free Report) , are expected to benefit in the near term.
E-commerce Sales Continue to Soar
According to the Department of Commerce, e-commerce sales in the United States surpassed the $1 trillion mark for the first time to reach $1.02 trillion in the past 12 months. This comes despite soaring commodity prices. Online sales are likely to grow in single digits this year for the first since 2009.
For 2022, online sales growth is projected at 9% as inflationary pressure continues to batter the retail sector. Even then, the retail sector has been doing quite well, with sales still on the rise. E-commerce has been playing a key role in this.
The third quarter has been relatively better for the retail sector. According to the Census Bureau, total retail sales for the quarter came in a $1,792 billion, increasing 0.7% from the prior quarter. Online sales increased 3% month over month and 10.8% year over year to $265.9 billion. E-commerce accounted for 14.8% of the overall third-quarter retail sales.
Although online retail sales are projected to grow in single digits this year, e-commerce expansion has been massive since the COVID-19 outbreak. E-commerce has been making its presence felt for quite some time now, but the pandemic gave it a massive boost as millions shopped from home on fears of contracting the virus and tried to maintain social distancing.
Although people started visiting brick-and-mortar stores as the economy reopened, e-commerce has continued its dominance. In fact, e-commerce spending was earlier projected to hit $1 trillion in 2024 but the target has been achieved this year itself, proving its immense potential.
Needless to say, the market has doubled in size in just three years. E-commerce spending is 25% higher than the pre-pandemic levels. Had the pandemic not struck and the market had grown at the rate of 14-15%, which was happening for years, total sales would have been around $815 billion, smaller by around $200 billion.
Our Choices
Given this scenario, it would be wise to invest in these four stocks with a strong online presence. Each of the stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar General Corporation is one of the largest discount retailers in the United States. DG trades in low-priced merchandise, typically $10 or less. Dollar General offers a wider selection of merchandise, including consumable items, seasonal items, home products and apparel.
Dollar General’s expected earnings growth rate for the current year is 13.8%. Shares of DG have gained 7.7% in the past 30 days. Dollar General Home presently has a Zacks Rank #2.
Sportsman's Warehouse Holdings, Inc. is an outdoor sporting goods retailer. Its stores offer camping products, fishing products, and hunting and shooting products. SPWH stores also provide clothing products, footwear products and optics, electronics, and accessories.
Sportsman's Warehouse’s expected earnings growth rate for next year is 25.2%. The Zacks Consensus Estimate for current-year earnings has improved 3.6% over the past 60 days. SPWHpresently sports a Zacks Rank #1.
Vivint Smart Home, Inc. is a smart home company, operating primarily in North America. VVNT delivers an integrated smart home system with in-home consultation, professional installation and support delivered by its Smart Home Pros, as well as 24/7 customer care and monitoring.
Vivint Smart Home’s expected earnings growth rate for the current year is 70.2%. Shares of VVNT have gained 23.6% in the past 30 days. VVNT presently has a Zacks Rank #2.
Arhaus, Inc. is a lifestyle brand and omni-channel retailer of premium home furnishings. ARHS offers assortment of heirloom quality products.
Arhaus’ expected earnings growth rate for the current year is 21.7%. The Zacks Consensus Estimate for current-year earnings has improved 15.1% over the past 60 days. ARHS presently carries a Zacks Rank #2.