Should Investors Be Watching These Top E-Commerce Stocks Right Now?
With the broader stock market recovering from Monday’s major dips, investors could be wondering what stocks to buy now. If anything, e-commerce stocks would be a viable candidate given the current market conditions. Now, for the most part, many attribute Monday’s losses to fears over the rising number of Delta variant coronavirus cases in the U.S. Understandably, the Delta variant is more infectious than most other variants. Because of all this, investors may want to consider investing in industries that flourished during the pandemic last year.
One answer to this would be the e-commerce sector. Accordingly, should there be another series of lockdowns, consumers would once again turn to e-commerce services for their retail needs. Should cases go down, some would argue that e-commerce could still have room to run as well. After all, digital commerce services provide consumers with a new level of convenience in our tech-focused world today. As more people experience this daily, I could see consumers and investors alike continue fueling the e-commerce train now.
Overall, some of the biggest names in e-commerce such as Amazon (NASDAQ: AMZN) and Alibaba (NYSE: BABA) continue to grow. On one hand, Amazon is hard at work electrifying its delivery fleet to meet upcoming sustainability standards. Last week, electric vehicle maker Rivian revealed that Amazon’s 100,000 vehicle order remains on track despite the recent chip shortages. Elsewhere, Alibaba is reportedly running its “largest-ever” recruitment program across its major business divisions. With all this activity in the e-commerce industry now, you might be keen on top e-commerce stocks yourself. In that case, here are three making waves in the stock market today.
Best E-Commerce Stocks To Watch Now
- Shopify Inc. (NYSE: SHOP)
- Wayfair Inc. (NYSE: W)
- Chewy Inc. (NYSE: CHWY)
Shopify Inc.
To begin with, we will be looking at e-commerce giant Shopify. For the uninitiated, the Canada-based company primarily helps merchants establish their e-commerce operations. As you can imagine, demand for its services skyrocketed at the onslaught of the pandemic. This would be the case as retailers rushed to establish their online stores. To facilitate all of this, Shopify relies on its e-commerce platform that acts as a retail point-of-sale system. More importantly, SHOP stock is looking at gains of over 5% just this week. Despite the recent choppiness in the broader market, investors appear keen to jump on the company’s shares. Would it be wise to follow suit?
Well, the hype around the company now could be due to its upcoming second-quarter earnings report. With Shopify looking to report on July 28, investors could be hoping for a repeat of its stellar first-quarter fiscal figures. In it, the company saw its total revenue for the quarter more than double year-over-year. Additionally, Shopify also posted gains of over 3,700% in earnings per share and net income over the same period.
On top of that, Shopify appears keen to retain all of its new clients gained throughout this pandemic so far. This is evident as the company unveiled numerous optimizations and new features to merchants and developers earlier this month. For starters, Shopify introduced a massive upgrade to its Liquid merchant customization platform, allowing merchants to better fine-tune their storefront designs. Moreover, the company is also slashing its revenue share claim from developers’ first $1 million earned annually on the platform. Pair this with the company’s various partnerships across tech giants and SHOP stock could have more space to grow. Would you agree?
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Wayfair Inc.
Another name to know in the e-commerce space now would be Wayfair. In short, the company primarily sells furniture and other home goods. It does so via its digital platform that offers homeowners over 14 million items from more than 11,000 global suppliers. With operations across the U.K., Germany, Canada, and the U.S., Wayfair is no newcomer to the game. Notably, home improvement trends remain persistent throughout the pandemic so far. With the likes of Best Buy (NYSE: BBY) and other names in the industry reporting upticks in sales, this seems to be the case. As a result, could now be the best time for investors to watch W stock?
For one thing, the company’s shares would likely benefit from consumers staying home. Evidently, W stock is currently looking at monumental gains of over 980% since its pandemic era low. The question now is, can it maintain this momentum moving forward? To get a clearer understanding of this, we could look at Wayfair’s latest quarter fiscal. Back in May, the company reported solid figures across the board. It raked in total revenue of $3.48 billion, marking a 49% year-over-year increase. On top of that, Wayfair also saw sizable year-over-year surges of 106% in net income and 105% in earnings per share.
Looking forward, CEO Niraj Shah said, “We are confident that customers will remain focused on their homes even as the environment normalizes in the US and Europe, and that our strong profitability should not only continue but expand.” Not to mention, Wayfair is now set to report its second-quarter earnings on August 5. Would all this make W stock a top watch for you now?
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Chewy Inc.
Chewy is an e-commerce stock that focuses on pet products and services. It strives to be the most trusted and convenient online destination for pet parents and partners everywhere. The company offers a personalized service of a neighborhood pet store alongside the convenience and speed of e-commerce. CHWY stock has seen gains of over 65% in the past year and currently trades at $82.52 as of 12:00 pm E.T.
Last month, the company announced stellar first-quarter financials. Firstly, the company reported net sales of $2.14 billion, growing 31.7% year-over-year. Secondly, it posted a net income of $38.7 million. The company says that 2021 is already turning out to be an exciting and busy year for Chewy given its impressive financials. It will continue to expand its customer base and grow its addressable market nevertheless.
Recently, the company also announced that it will be opening a new regional e-fulfillment center in Wilson County. This new e-commerce fulfillment center will create approximately 1,200 new jobs. Chewy’s decision to locate its newest e-fulfillment operations in Tennessee will significantly expand its capabilities in the region. Ideally, this serves to benefit both the state of Tennessee and Chewy in the long run. With Chewy aggressively growing its operations now, will you be adding CHWY stock to your watchlist?
