4 E-commerce Stocks to Buy on Coronavirus-Led Online Sales Spike
The coronavirus pandemic has brought about a sea change inthe e-commerce industry, making it an inevitable part of day-to-day lives courtesy of social distancing and stay-at-home restrictions.
The resurgence of coronavirus cases, and increasing health risks and deaths related to the same have made people apprehensive, which in turn is leading to growing adoption of e-commerce.
Additionally, the need for door-to-door delivery of essentials during this crisis scenario is continuously resulting in rising online orders worldwide. Moreover, growing proliferation of fast delivery services being offered by the online retailers is driving online sales amid the current scenario.
According to latest data by Adobe Analytics, online sales in July 2020 reached $66.3 billion, surging 55% on a year-over-year basis. Adobe suggests that the figure is expected to surpass the total online sales in 2019 by October 2020, per the same report.
Also, solid momentum across online grocery sales, which has reached unexpected heights so far this year owing to COVID-19, has been fueling online retail sales globally since the onset of this pandemic.
This is evident from the robust performance of the Global X E-Commerce ETF (EBIZ), which has gained 56.2% on a year-to-date basis.
Moreover, blockbuster performance delivered by the e-commerce giant Amazon AMZN in second-quarter 2020, driven by robust online grocery sales that tripled year over year, and its positive outlook is testament to the fact that the e-commerce space is likely to sustain this momentum for the time being.
Stellar results reported by other e-commerce players such as Alibaba BABA, eBay EBAY, MercadoLibre and Wayfair reinforce the sentiment further that the e-commerce space currently provides ideal investment options.
According to a report from Statista, e-commerce space is expected to cross revenues of $2.3 trillion in 2020. Further, the report suggests that revenues are anticipated to witness a CAGR of 8.1% between 2020 and 2024 to reach $3.1 trillion by 2024.
Given this upbeat scenario, investors can tap the potential of the following e-commerce stocks, as they are well-poised to capitalize on the prospects present in the online retail space on the back of their strong fundamentals.
JD.com JD is riding on its JD Retail segment — a key catalyst courtesy of its robust omni-channel strategy. Moreover, its deepening focus toward ensuring supply and fulfillment of essential products to customers during the ongoing pandemic situation remains commendable.
The company’s New Businesses segment is also a major positive. Further, strengthening momentum across JD logistics, Flash Delivery initiative, and supply chain and technology capabilities are other tailwinds. Moreover, the integration of AI into JD’s warehouse network is expected to continue facilitating the delivery of its direct sales orders.
JD.com currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for 2020 earnings has been revised upward by 20.8% in the past 30 days to $1.51 per share.
JD.com, Inc. Price and Consensus
Stamps.com STMP is gaining on accelerated rate of customer acquisition and increasing shipment volume owing to COVID-19. Additionally, strengthening package volumes are favoringthe company.
Further, the ramp up of its United Parcel Services partnership to all platforms is a tailwind. Moreover, the company’s long-term reseller agreement with United States Postal Service, with benefits to higher volume customers remains a major positive.
Stamps.com currently sports a Zacks Rank #1. The consensus mark for 2020 earnings is pegged at $7.36 per share which moved towards north by 57.6% over the past 30 days.
Stamps.com Inc. Price and Consensus
Fiverr International’s FVRR platform, which connects people offering logo, poster and brochure designing, photoshop editing, content marketing, web analytics, translation and other services with people outsourcing such work to freelancers, remains a major positive due tothe increasing remote working trend on account of the coronavirus pandemic.
Furthermore, the launch of four industry stores — Gaming, E-commerce, Architecture and Politics — is expected to aid the company in expanding catalog and gaining momentum across larger businesses. Also, the company’s accelerated AI efforts through personalization and customer support are likely to drivesales in the near term.
Additionally, the company’s focus on international expansion is a tailwind. The expansion of its global marketplace to two new languages —French and Spanish is a positive.
Fiverr currently carries a Zacks Rank #2 (Buy). The consensus mark for 2020 earnings is pegged at 21 cents per share, which narrowed down from a loss of 31 cents in the past 30 days.
Fiverr International Lt. Price and Consensus
Groupon GRPN has beenbenefiting from restructuring efforts and coronavirus crisis-led e-commerce boom. The company is focusing on higher-margin healthy food offerings, which is likely to drive business growth. Also, itsefforts for reducingdependence on goods deals and shifting focus toward local services market are positives.
Further, its recent partnership with Redzy remains noteworthy. It is expected to bolster customer engagement on Groupon Connect, which is its next-generation API that facilitates partners to join the marketplace relatively faster and seamlessly.
Groupon currently carries a Zacks Rank #2. The consensus mark for 2020 is pegged at a loss of $3.99 per share, having narrowed from a loss of $5.16 per share in the past 30 days.
Groupon, Inc. Price and Consensus
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Amazon.com, Inc. (AMZN): Free Stock Analysis Report
eBay Inc. (EBAY): Free Stock Analysis Report
Groupon, Inc. (GRPN): Free Stock Analysis Report
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Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
Stamps.com Inc. (STMP): Free Stock Analysis Report
Fiverr International Lt. (FVRR): Free Stock Analysis Report
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