The holiday season for 2023 was kickstarted by the e-commerce sales boom observed on Black Friday following Thanksgiving. Usually, late November and December is a highly profitable period for the online retail market. However, painfully high fuel and food prices had ensured that 2022 was somewhat of an exception. This year, Black Friday e-commerce spending went up 7.5% from the year earlier, reaching a record $9.8 billion in the United States, according to preliminary estimates from Adobe Digital Insights.
It also projects that shoppers will have spent $12-12.4 billion on Cyber Monday, the biggest U.S. online shopping day, a 9.7% increase from a year earlier.
Since the start of 2022, consumers have been dealing with higher interest rates and inflation, which has refused to go away. On cue, there were expectations that even as this holiday season was certain to be an improvement over 2022, it would be slower than the years gone by. However, early indications from Friday and Monday's shopping numbers suggest that consumer spending looks to have steadied.
The United States is considered the world's most opportune market for online shopping and is a global standard for e-commerce. The segment accounts for more than $1 trillion in annual retail sales in the country. With the holiday season in its early stages and the shopping spree seen over the Thanksgiving weekend going beyond expectations, this might be the perfect time to invest in some of the biggest e-commerce players in the domestic market.
The stocks below flaunt a Zacks Rank #1 (Strong Buy) or Rank #2 (Buy). The search was also narrowed down with a
VGM Score of A or B. Here V stands for Value, G for Growth and M for Momentum. The score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners. You can see . the complete list of today’s Zacks #1 Rank stocks here Amazon.com, Inc. ( AMZN Quick Quote AMZN - Free Report) engages in the business of retail sales of consumer products and subscriptions via online and physical stores in North America and globally.
Amazon’s expected earnings growth rate for the current year is 276.1%. The Zacks Consensus Estimate for its current-year earnings has improved 19.7% over the past 60 days. This Zacks Rank #2 company has a VGM Score of B.
Travelzoo ( TZOO Quick Quote TZOO - Free Report) is an Internet media company that provides travel, entertainment and local deals from travel and entertainment companies, and local businesses globally.
Travelzoo’s expected earnings growth rate for the current year is 50.9%. The Zacks Consensus Estimate for its current-year earnings has improved 11.1% over the past 60 days. This Zacks Rank #1 company has a VGM Score of B.
Booking Holdings Inc. ( BKNG Quick Quote BKNG - Free Report) is a global provider of travel and restaurant online reservation and related services. It is the operator of Booking.com.
Booking Holdings’ expected earnings growth rate for the current year is 49.5%. The Zacks Consensus Estimate for its current-year earnings has improved 3.5% over the past 60 days. This Zacks Rank #2 company has a VGM Score of B.