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4 E-commerce Stocks Set to Beat Earnings Estimates in Q4
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E-commerce stocks continued to suffer from unfavorable market dynamics during fourth-quarter 2022.
These stocks suffered since the pandemic-induced e-commerce boom has been cooling off in the past few quarters with the reopening of economies across the world. Further, the slowdown in consumer spending due to high inflation remained a concern. Also, e-commerce companies witnessed the brunt of inflationary pressure in the form of rising transportation and fulfillment expenses. Additionally, supply-chain constraints and labor shortages were overhangs.
Nevertheless, solid momentum during the holiday season and record-high e-commerce sales are likely to have been a major tailwind.
According to data from Adobe Analytics, consumers spent a staggering $211.7 billion on online purchases between Nov 1 and Dec 31, up 3.5% on a year-over-year basis. This marked a new record for e-commerce sales. Cyber week recorded $35.3 billion in online sales, up 4% year over year.
Increasing demand for ultra-fast and door-to-door delivery of orders for essentials, medicines, groceries and luxury items is expected to have contributed well.
Additionally, the impacts of the growing proliferation of Internet use and online payment apps globally are expected to get reflected in the e-commerce companies’ results for the quarter under review.
Apart from online retail companies, the Internet-Commerce industry houses online travel booking companies. These stocks are expected to have continued gaining on the boom in the travel industry. Relaxation of travel restrictions and growing confidence among the people are expected to have bolstered bookings of online travel stocks during the fourth quarter. Moreover, increased consumer demand for travel industry-related services might have been a positive.
How to Make the Right Pick?
With the presence of several industry participants, finding the right e-commerce stocks with the potential to beat on earnings can be daunting. Our proprietary methodology, however, makes this task fairly simple.
You could narrow down your choices by looking at the stocks that have the perfect combination of the two key elements — a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP is our proprietary methodology for determining the stocks with the maximum chance of beating estimates at their next earnings announcement. It is the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.
Our research shows that for stocks with this apt mix of ingredients, the odds of a positive earnings surprise are as high as 70%.
Our Bets
Four e-commerce stocks mentioned below have the right combination of elements to beat on earnings this reporting cycle:
The company is scheduled to report fourth-quarter 2022 results on Feb 9. The Zacks Consensus Estimate for its earnings has been stable at $1.85 per share in the past 30 days.
Norwalk, CT-based Booking Holdings (BKNG - Free Report) has an Earnings ESP of +0.83% and currently carries a Zacks Rank #2.
The company is scheduled to report fourth-quarter 2022 results on Feb 23. The Zacks Consensus Estimate for its earnings has moved up 1.3% to $20.59 per share in the past 30 days.
Austin, TX-based BigCommerce (BIGC - Free Report) has an Earnings ESP of +7.61% and currently carries a Zacks Rank #2.
The company is scheduled to report fourth-quarter 2022 results on Feb 23. The Zacks Consensus Estimate for loss has narrowed from 19 cents per share to 18 cents per share over the past 30 days.
Needham, MA-based TripAdvisor (TRIP - Free Report) has an Earnings ESP of +112.9% and currently carries a Zacks Rank #3.
The company is scheduled to report fourth-quarter 2022 results on Feb 14. The Zacks Consensus Estimate for its earnings has been stable at 5 cents per share in the past 30 days.
Image: Bigstock
4 E-commerce Stocks Set to Beat Earnings Estimates in Q4
E-commerce stocks continued to suffer from unfavorable market dynamics during fourth-quarter 2022.
These stocks suffered since the pandemic-induced e-commerce boom has been cooling off in the past few quarters with the reopening of economies across the world. Further, the slowdown in consumer spending due to high inflation remained a concern. Also, e-commerce companies witnessed the brunt of inflationary pressure in the form of rising transportation and fulfillment expenses. Additionally, supply-chain constraints and labor shortages were overhangs.
Nevertheless, solid momentum during the holiday season and record-high e-commerce sales are likely to have been a major tailwind.
According to data from Adobe Analytics, consumers spent a staggering $211.7 billion on online purchases between Nov 1 and Dec 31, up 3.5% on a year-over-year basis. This marked a new record for e-commerce sales. Cyber week recorded $35.3 billion in online sales, up 4% year over year.
Increasing demand for ultra-fast and door-to-door delivery of orders for essentials, medicines, groceries and luxury items is expected to have contributed well.
Additionally, the impacts of the growing proliferation of Internet use and online payment apps globally are expected to get reflected in the e-commerce companies’ results for the quarter under review.
Apart from online retail companies, the Internet-Commerce industry houses online travel booking companies. These stocks are expected to have continued gaining on the boom in the travel industry. Relaxation of travel restrictions and growing confidence among the people are expected to have bolstered bookings of online travel stocks during the fourth quarter. Moreover, increased consumer demand for travel industry-related services might have been a positive.
How to Make the Right Pick?
With the presence of several industry participants, finding the right e-commerce stocks with the potential to beat on earnings can be daunting. Our proprietary methodology, however, makes this task fairly simple.
You could narrow down your choices by looking at the stocks that have the perfect combination of the two key elements — a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP is our proprietary methodology for determining the stocks with the maximum chance of beating estimates at their next earnings announcement. It is the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.
Our research shows that for stocks with this apt mix of ingredients, the odds of a positive earnings surprise are as high as 70%.
Our Bets
Four e-commerce stocks mentioned below have the right combination of elements to beat on earnings this reporting cycle:
Bellevue, WA-based Expedia Group (EXPE - Free Report) has an Earnings ESP of +7.34% and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to report fourth-quarter 2022 results on Feb 9. The Zacks Consensus Estimate for its earnings has been stable at $1.85 per share in the past 30 days.
Expedia Group, Inc. Price and EPS Surprise
Expedia Group, Inc. price-eps-surprise | Expedia Group, Inc. Quote
Norwalk, CT-based Booking Holdings (BKNG - Free Report) has an Earnings ESP of +0.83% and currently carries a Zacks Rank #2.
The company is scheduled to report fourth-quarter 2022 results on Feb 23. The Zacks Consensus Estimate for its earnings has moved up 1.3% to $20.59 per share in the past 30 days.
Booking Holdings Inc. Price and EPS Surprise
Booking Holdings Inc. price-eps-surprise | Booking Holdings Inc. Quote
Austin, TX-based BigCommerce (BIGC - Free Report) has an Earnings ESP of +7.61% and currently carries a Zacks Rank #2.
The company is scheduled to report fourth-quarter 2022 results on Feb 23. The Zacks Consensus Estimate for loss has narrowed from 19 cents per share to 18 cents per share over the past 30 days.
BigCommerce Holdings, Inc. Price and EPS Surprise
BigCommerce Holdings, Inc. price-eps-surprise | BigCommerce Holdings, Inc. Quote
Needham, MA-based TripAdvisor (TRIP - Free Report) has an Earnings ESP of +112.9% and currently carries a Zacks Rank #3.
The company is scheduled to report fourth-quarter 2022 results on Feb 14. The Zacks Consensus Estimate for its earnings has been stable at 5 cents per share in the past 30 days.
TripAdvisor, Inc. Price and EPS Surprise
TripAdvisor, Inc. price-eps-surprise | TripAdvisor, Inc. Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.