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Contactless, Digital Services Become New Normal: 5 Winners
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On May 6, PayPal Holdings Inc. (PYPL - Free Report) said that it expects a strong recovery in payment volumes in the second quarter as online spending has surged due to the coronavirus pandemic. Online retailers and service providers involved in contactless payment and social distancing are getting a boost as people prefer staying at home even though lockdowns have started to ease.
Online Grocery Sales Get a Boost
Online retailers are witnessing a surge in demand, which is boosting digital payments. PayPal on Wednesday said that it added a record 7.4 million new customers in April. Although retail sales plunged 8.7% in March, according to the U.S. Census Bureau, online grocery sales soared. According to a Brick Meets Click and Symphony RetailAI Online Grocery Survey, online grocery sales increased 37% month-over-month to $5.3 billion in April.
Prior to the pandemic, only about 3% or 4% of grocery spending in the United States was made online. One study by the Food Marketing Institute conducted by Nielsen predicts online grocery sales to reach $100 billion and make up as much as 20% of total grocery retail by 2025.
Contactless Services Gain Traction
Contactless services as a safety measure to keep the virus at bay have led to a surge in digital payments. Per a recent survey conducted by Mastercard, 51% of the 1,000 surveyed, tapped a card or phone at the point of sale in March and April 2020. About 50% of them said COVID-19 inspired them to try the technology for the first time.
Video streaming apps, social media and chatting platforms, video conferencing and online delivery apps have also gained traction over the past few weeks. Last month, Netflix, Inc. (NFLX - Free Report) released its first- quarter subscriber figures, which more than doubled its projections. The streaming giant added 15.8 million subscribers from January through March.
Snap, Inc. (SNAP - Free Report) also saw its number of users growing in the first quarter. Both Snap and Netflix’s recent boom started only in mid March, the time the pandemic peaked.
Also, videogame sales in the United States spiked in March to a 12-year high, according to research firm NPD. Sales of gaming hardware, software and accessories in the country soared 35% to $1.6 billion in the month from a year earlier.
Our Choices
Technology is one of the rare sectors benefiting from the coronavirus pandemic, which has made at-home work and play the new normal for billions. Given this scenario, it is prudent to say that the following five stocks are likely to rally in the near future.
Wayfair, Inc. (W - Free Report) is one of the world's leading online sellers of home goods products, consisting of furniture and home decor. It operates worldwide through Wayfair.com and four other branded websites namely – Joss & Main, AllModern, Birch Lane and Perigold.
The company’s expected earnings growth rate for the current year is 5.2%. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the past 30 days. Wayfair sports a Zacks Rank #1 (Strong Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Netflix is considered a pioneer in the streaming space. It has a wide-ranging content portfolio and fortified international footprint.
The company’s expected earnings growth rate for the current year is 55.9%. The Zacks Consensus Estimate for current-year earnings has improved 7.7% over the past 30 days. Netflix has a Zacks Rank #2 (Buy).
eBay Inc. (EBAY - Free Report) operates as an online shopping site that allows visitors to browse through available products listed for sale or auction through each company's online storefront.
The company’s expected earnings growth rate for the current year is 9.5%. The Zacks Consensus Estimate for current-year earnings has improved 2.6% over the past 30 days. eBay has a Zacks Rank #2.
Akamai Technologies Inc. (AKAM - Free Report) is a global provider of content delivery network and cloud infrastructure services. The company’s solutions accelerate and improve the delivery of content over the Internet, enabling faster response to requests for web pages, streaming of video and audio, business applications.
The company’s expected earnings growth rate for the current year is 10%. The Zacks Consensus Estimate for current-year earnings has improved 1.2% over the past 30 days. Akamai has a Zacks Rank #2.
Nintendo Co. (NTDOY - Free Report) is a worldwide leader in the creation of interactive entertainment. It manufactures and markets hardware and software for its popular home video game systems, including Nintendo 64 and Game Boy.
The company’s expected earnings growth rate for the current year is 12.2%. The Zacks Consensus Estimate for current-year earnings has improved 6% over the past 60 days. Nintendo carries a Zacks Rank #2.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Shutterstock
Contactless, Digital Services Become New Normal: 5 Winners
On May 6, PayPal Holdings Inc. (PYPL - Free Report) said that it expects a strong recovery in payment volumes in the second quarter as online spending has surged due to the coronavirus pandemic. Online retailers and service providers involved in contactless payment and social distancing are getting a boost as people prefer staying at home even though lockdowns have started to ease.
Online Grocery Sales Get a Boost
Online retailers are witnessing a surge in demand, which is boosting digital payments. PayPal on Wednesday said that it added a record 7.4 million new customers in April. Although retail sales plunged 8.7% in March, according to the U.S. Census Bureau, online grocery sales soared. According to a Brick Meets Click and Symphony RetailAI Online Grocery Survey, online grocery sales increased 37% month-over-month to $5.3 billion in April.
Prior to the pandemic, only about 3% or 4% of grocery spending in the United States was made online. One study by the Food Marketing Institute conducted by Nielsen predicts online grocery sales to reach $100 billion and make up as much as 20% of total grocery retail by 2025.
Contactless Services Gain Traction
Contactless services as a safety measure to keep the virus at bay have led to a surge in digital payments. Per a recent survey conducted by Mastercard, 51% of the 1,000 surveyed, tapped a card or phone at the point of sale in March and April 2020. About 50% of them said COVID-19 inspired them to try the technology for the first time.
Video streaming apps, social media and chatting platforms, video conferencing and online delivery apps have also gained traction over the past few weeks. Last month, Netflix, Inc. (NFLX - Free Report) released its first- quarter subscriber figures, which more than doubled its projections. The streaming giant added 15.8 million subscribers from January through March.
Snap, Inc. (SNAP - Free Report) also saw its number of users growing in the first quarter. Both Snap and Netflix’s recent boom started only in mid March, the time the pandemic peaked.
Also, videogame sales in the United States spiked in March to a 12-year high, according to research firm NPD. Sales of gaming hardware, software and accessories in the country soared 35% to $1.6 billion in the month from a year earlier.
Our Choices
Technology is one of the rare sectors benefiting from the coronavirus pandemic, which has made at-home work and play the new normal for billions. Given this scenario, it is prudent to say that the following five stocks are likely to rally in the near future.
Wayfair, Inc. (W - Free Report) is one of the world's leading online sellers of home goods products, consisting of furniture and home decor. It operates worldwide through Wayfair.com and four other branded websites namely – Joss & Main, AllModern, Birch Lane and Perigold.
The company’s expected earnings growth rate for the current year is 5.2%. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the past 30 days. Wayfair sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Netflix is considered a pioneer in the streaming space. It has a wide-ranging content portfolio and fortified international footprint.
The company’s expected earnings growth rate for the current year is 55.9%. The Zacks Consensus Estimate for current-year earnings has improved 7.7% over the past 30 days. Netflix has a Zacks Rank #2 (Buy).
eBay Inc. (EBAY - Free Report) operates as an online shopping site that allows visitors to browse through available products listed for sale or auction through each company's online storefront.
The company’s expected earnings growth rate for the current year is 9.5%. The Zacks Consensus Estimate for current-year earnings has improved 2.6% over the past 30 days. eBay has a Zacks Rank #2.
Akamai Technologies Inc. (AKAM - Free Report) is a global provider of content delivery network and cloud infrastructure services. The company’s solutions accelerate and improve the delivery of content over the Internet, enabling faster response to requests for web pages, streaming of video and audio, business applications.
The company’s expected earnings growth rate for the current year is 10%. The Zacks Consensus Estimate for current-year earnings has improved 1.2% over the past 30 days. Akamai has a Zacks Rank #2.
Nintendo Co. (NTDOY - Free Report) is a worldwide leader in the creation of interactive entertainment. It manufactures and markets hardware and software for its popular home video game systems, including Nintendo 64 and Game Boy.
The company’s expected earnings growth rate for the current year is 12.2%. The Zacks Consensus Estimate for current-year earnings has improved 6% over the past 60 days. Nintendo carries a Zacks Rank #2.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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