Are These The Best E-Commerce Stocks To Invest In Today?
E-commerce stocks could be worth looking at in the stock market this week. By and large, this would be due to the prominent focus on the broader retail industry now. Notably, the U.S. Commerce Department just released its latest monthly consumer spending figures earlier today. To highlight, April’s retail sales are up by 0.9% overall as general demand and inflation drove spending. For reference, Dow Jones economist consensus was expecting a 1% increase. Despite the seemingly less-than-ideal spending environment, consumers continue to hold strong with sales rising for the fourth month back-to-back.
Not to mention, several top e-commerce stocks taking center stage on the earnings front this week. For starters, the likes of JD.com (NASDAQ: JD) and Walmart (NYSE: WMT) provided their latest quarterly financial updates earlier today. Across the board, both firms beat consensus revenue projections from Wall Street. At the same time, Pinduoduo (NASDAQ: PDD) is also gaining traction now thanks to a recent upgrade from JPMorgan (NYSE: JPM). As of earlier today, the firm now has a $55 price target and an Overweight rating on PDD stock. On the whole, e-commerce stocks appear to be drawing attention in the stock market today. Could one of these firms be your next big investment?
E-Commerce Stocks To Buy [Or Sell] This Week
- Home Depot Inc. (NYSE: HD)
- Sea Limited (NYSE: SE)
- Chewy Inc. (NYSE: CHWY)
- Etsy Inc. (NASDAQ: ETSY)
Home Depot Inc.
Starting us off today, we have Home Depot, one of the largest home improvement retailers in the world. With over 2,300 stores across North America, the company supplies tools, construction products, appliances, and services. It also has over 70 distribution centers in the U.S. alone. The company also boasts an impressive e-commerce business that offers more than one million products for both DIY customers and professional contractors. Today, the company reported its first-quarter financials.
Firstly, it reported sales of $38.9 billion for the quarter, an increase of 3.8% year-over-year. This would be the highest quarter for sales in the company’s history. Secondly, net earnings for the quarter were $4.2 billion or $4.09 per diluted share. Home Depot says that after comparing against last year’s historic growth and despite facing a slower start to the year, it has managed to pull off another solid quarter. Topping things off, the company is also raising its fiscal 2022 guidance and now expects an operating margin of approximately 15.4% and diluted earnings per share growth to be in the mid-single digits. All things considered, is HD stock worth investing in right now?
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Sea Limited
Sea Limited is a leading e-commerce company with headquarters in Singapore. The company has three core businesses spanning the e-commerce, digital entertainment, and digital payments markets. Shopee, its e-commerce platform is the largest in Southeast Asia and Taiwan. Also, Shopee was the top e-commerce brand in YouGov’s “Best Global Brands 2021” and ranked sixth overall. SE stock is up by over 12% on today’s opening bell. The company also reported its first-quarter financials.
Diving in, the company posted a total GAAP revenue of $2.9 billion, an increase of 64.4% year-over-year. Total gross profit was $1.2 billion, up by 81.3% year-over-year. This was driven by gross orders that totaled 1.9 billion, increasing by over 70% year-over-year. Gross Merchandise Value was $17.4 billion for the quarter, an increase of 38.7% year-over-year. In Southeast Asia and Taiwan respectively, Shopee continues to rank first in the Shopping category by average monthly active users and total time spent in-app for the first quarter of 2022. With that in mind, is SE stock worth adding to your portfolio right now?
Chewy Inc.
Next, we have Chewy, an online e-commerce company that runs a pet food retailing business. It strives to be one of the most trusted and convenient destinations for both pet parents and partners everywhere. In essence, it offers a personalized service of a neighborhood pet store alongside the convenience and speed of e-commerce. The company offers a wide selection of over 100,000 products that include food and medication for pets.
In late March, the company posted its fourth quarter and fiscal 2021 financials. Net sales for the quarter was $2.39 billion, an increase of over 17% year-over-year. “Our ability to deliver 24 percent net sales growth in 2021, on top of the outsized growth we delivered last year, reflects the durability of our business and the Pet category beyond the near-term benefits of the pandemic, and is a strong testament to Chewy’s ability to execute in the face of rapidly evolving macro conditions,” said Sumit Singh, Chief Executive Officer of Chewy. Also, Singh notes that Chewy’s net sales per active customer hit a record high of $430 during the quarter. This would go to show the persisting loyalty consumers have towards the company’s offerings. With all this in mind, would CHWY stock be a top buy in your books?
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Etsy Inc.
Finishing this list today, we have Etsy, an e-commerce company that focuses on handmade and vintage items. These would include jewelry, bags, furniture, and art & crafts. Items that are at least 20 years old are only considered to be vintage by the company. Also, its marketplace platform connects millions of buyers and sellers from around the globe. For sellers, Etsy also offers a range of tools and services that can address their key business needs.
On May 4, 2022, the company reported its first-quarter financials as well. Its highlights include a consolidated gross merchandise sales (GMS) of $3.3 billion, increasing by 3.5% year-over-year. Consolidated revenue for the quarter was $579.3 million, an increase of 5.2% year-over-year. Furthermore, net income for the quarter was $86.1 million. Etsy says that despite continued uncertainty and macroeconomic headwinds, it continues to deliver solid results that show that it is maintaining most of its gains. With that piece of information, is ETSY stock worth buying today?
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