5 Players to Benefit From Coronavirus-Led E-commerce Trend
The coronavirus pandemic has altered the nature of buying and selling activities around the world, with more people now turning to online portals.
Although restrictions are being lifted, consumers prefer using online platforms for their household products, medicines, food items and other essentials in order to avoid exposure to the virus. This has led companies to re-think their strategies and investments, emphasizing on the development of websites and mobile apps. Moreover, companies are reinventing delivery options, such as home delivery, curbside pickup, Buy Online Pick-up in Store and Buy Online-Ship From-Store.
With most people working from home, studying from home and maintaining social distancing, the online trend is here to stay. Reflective of this, NRF noted that online sales rose 11.6% year over year in June. E-commerce sales are envisioned to reach $709.78 billion in 2020, per eMarketer’s forecast, following which it will account for 14.5% of total U.S. retail sales this year.
Hence, with consumers’ changing preferences, e-commerce appears to be the next big thing in retail. In fact, the online revolution is proving even more beneficial for both consumers and retailers amid social distancing that will continue to be adhered to until the world is out of danger.
5 Beneficiaries
In the present scenario, it will be wise to invest in stocks, which have adapted to the e-commerce business. That said, we bring you five stocks that are poised to stay in business in the second half of 2020, with their promising business plans to suit the online shopping arena
eBay Inc. EBAY operates as an online shopping site that allows visitors to browse through products listed for sale or auction through the respective vendor’s online store front. The company’s expected earnings growth rate for the current year is 23%. The Zacks Consensus Estimate for its current-year earnings has improved 2.4% over the past 30 days. eBay sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ohio-based grocery giant The Kroger Co. KR has been doing extremely well in meeting the consumers’ grocery needs through multiple innovative delivery options like no-contact delivery, low-contact pickup service and ship-to-home orders. Moreover, it has been making prudent investments to bolster omni-channel operations, improve supply chain and increase manpower to ensure swift customer service in these challenging times. The company’s expected earnings growth rate for the current year is 28.6%. The Zacks Consensus Estimate for its current-year earnings has climbed 1.8% in the past seven days. The company has an expected long term earnings growth rate of 5.5%. It presently sports a Zacks Rank #1.
JD.com, Inc. JD operates as an e-commerce company and retail infrastructure service provider. The company is gaining from the accelerated growth of e-commerce across China. The company has an expected long-term earnings growth rate of 46.8%. The company’s expected earnings growth rate for the current year is 20.2%. The Zacks Consensus Estimate for its current-year earnings has improved 2.5% in the past seven days. Jd.com carries a Zacks Rank #1.
Etsy, Inc. ETSY operates online marketplaces for buyers and sellers. The company witnessed more than 100% growth for Etsy Marketplace in April, accompanied by a surge in web traffic, search interest and app download volumes. The company’s expected earnings growth rate for the current year is 46.1%. The Zacks Consensus Estimate for its current-year earnings has climbed 5.7% in the past 30 days. The company has an expected long-term earnings growth rate of 22.4%. Etsy carries a Zacks Rank #1.
Amazon.com, Inc. AMZN, which is involved in the sale of consumer products and subscriptions, accounts for nearly half of the U.S. e-commerce market. The company has an expected long-term earnings growth rate of 24.5%. The Zacks Consensus Estimate for its current-year earnings has climbed 1.6% in the past 30 days. Amazon currently carries a Zacks Rank #2 (Buy).
5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.
See the 5 high-tech stocks now>>
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