Are These The Best E-Commerce Stocks To Invest In Today?
E-commerce stocks appear to be among the stocks taking center stage in the stock market now. If anything, this subsection of the retail industry reported solid figures throughout the second quarter recently. This is understandable as most players in the space continue to benefit from the impact of the pandemic. Sure, with all the talk about the economy reopening over the past few months, some would argue that e-commerce companies could lose momentum moving forward. However, with the current resurgence of coronavirus cases globally, this may not necessarily be the case.
For some perspective, the World Health Organization (WHO) is currently monitoring yet another new coronavirus variant, “mu”. According to WHO, the “variant of interest” has the potential to evade immunity provided by previous COVID-19 infection or vaccination. All in all, the world continues to grapple with the current pandemic right now. Because of all this, I could understand if investors are once again turning towards e-commerce stocks. After all, the e-commerce industry remains a key sector amidst the current pandemic.
If anything, the industry continues to expand and grow regardless of the current market conditions. Earlier today Amazon (NASDAQ: AMZN) CEO Andy Jassy revealed the company’s latest effort to ramp up its operations. According to Jassy, Amazon plans to hire 55,000 people to fill corporate and tech roles globally over the coming months. Elsewhere, even companies like Best Buy (NYSE: BBY) that pivoted towards e-commerce recently are on the rise as well. The company posted earnings per share of $2.98 on revenue of $11.85 billion last week, blowing past consensus estimates. With all that in mind, here are three top e-commerce stocks to know in the stock market today.
Top E-Commerce Stocks To Buy [Or Sell] This Month
- Chewy Inc. (NYSE: CHWY)
- Shopify Inc. (NYSE: SHOP)
- Wayfair Inc. (NYSE: W)
Chewy Inc.
First, on this list, we have the e-commerce company Chewy. In essence, the company is an online retailer of pet food and other pet-related products. It strives to be one of the most trusted and convenient destinations for pet owners worldwide. For that, it offers a broad selection of high-quality pet products and services. The company’s shares are down by 8% after reporting its earnings on Wednesday. However, could this be an opportunity for investors to buy on the dip?
Diving into its financial results, Chewy reported that net sales grew by 26.8% year-over-year to $2.16 billion. Its active customers for the quarter were 20.1 million, increasing by 21.1% year-over-year. Furthermore, net sales per active customer for the quarter was $404, an increase of 13.5%, showing that more customers are shopping more at Chewy. This would demonstrate the strength of its business model and that its business remains healthy. The company also notes that customer engagement is growing and that it is confident in delivering strong results while navigating uncertain market conditions.
The company’s Chewy Health also continues to grow and serve its base of customers and veterinarian partners. In fact, the company has launched a marketplace for veterinarians directly on Chewy.com to help them grow clinic revenues and improve the experience for pet owners. This revolutionary free service enables veterinarians to choose to list items on Chewy.com, set prices, and earn revenue when customers place orders in-clinic or purchase them directly via Chewy. Given the innovation that the company is showing, will you consider buying CHWY stock right now?
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Shopify Inc.
Next, we have Shopify, a multinational e-commerce company with headquarters in Ontario, Canada. The company is building a global commerce operating system along with a growing set of tools and capabilities that enable merchants of all sizes to sell to anyone, anywhere. With that, its proprietary e-commerce platform is crafted for simplicity and scalability. It also utilizes machine learning and has accumulated tens of billions of interactions in over 10 years to leverage on.
In late July, the company reported its second-quarter financials. Notably, it achieved its first $1 billion revenue quarter with record gross merchandise volume (GMV). In detail, GMV for the quarter was $42.2 billion, while gross payments volume (GPV) grew to $20.3 billion, and accounted for 48% of GMV processed in the quarter. The company’s subscription solutions revenue for the quarter was $334.2 million, up by 70% year-over-year, and is primarily due to more merchants joining the platform.
The company has also been building the foundation of its Shopify Fulfillment Network. This includes introducing features to help merchants better manage the products fulfilled on its network, improve shipping speed and accuracy. It also added features and functionality to Shop, its mobile shopping assistant. Namely, this would be its analytics dashboard and automated marketing tools to support merchant sales efforts. Given all of this, would you say that SHOP stock is worth buying today?
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Wayfair Inc.
Last but not least, we have Wayfair. In brief, the Massachusetts-based company primarily sells furniture and home goods via its e-commerce operations. For a sense of scale, Wayfair’s fulfillment network currently spans the U.S., Germany, and the U.K. Notably, the company’s website offers homeowners over 14 million items from more than 11,000 global suppliers.
As a result, I could see investors turning their radars towards W stock now. For the most part, this would make sense as consumers look to improve their homes given the current pandemic conditions. W stock has gained by over 900% since its pandemic era low. Considering all of this, could W stock still have more room to run moving forward?
To help get a clearer understanding of this, we could take a closer look at its recent fiscal quarter. Last month, Wayfair reported earnings per share of $1.89 on revenue of $3.86 billion for the quarter. In particular, the company crushed Wall Streets’ earnings per share estimate of $1.15. Moreover, Wayfair also saw its active customer increase by 20% year-over-year, totaling 31.1 million. All things considered, would W stock be a top buy for you?
