Are These Best E-Commerce Stocks To Buy Now?
E-commerce stocks along with the broader retail industry continue to gain attention in the stock market this week. For the most part, retailers posting stellar quarterly figures and positive retail sales data would be driving this momentum. Ever since the onslaught of the pandemic, e-commerce has and continues to become the go-to medium of operation for retailers. Accordingly, even with inflation factored in, consumers continue to spend going into the holiday season. If anything, the widespread availability of e-commerce services remains a key enabler of said spending.
For instance, we could look at conventional retailers such as Kohl’s (NYSE: KSS) that have pivoted towards digital commerce. In its third fiscal quarter report earlier today, the company posted an earnings per share of $1.65. Notably, this is more than double Wall Street’s projections of $0.64. At the same time, the company also raked in a total revenue of $4.6 billion throughout the quarter. All in all, the company cites the reopening economy as a key component of rising consumer demand for its core apparel and cosmetics offerings.
That’s not all, investors also have a slew of other retail earnings to consider in the stock market today. Earlier today, BJ’s Wholesale (NYSE: BJ) posted an earnings per share of $0.91 on revenue of $4.26 billion for the quarter. This handily topped earnings estimates of $0.80 and $3.92 billion respectively. Additionally, the likes of Bath & Body Works (NYSE: BBWI) and Victoria’s Secret (NYSE: VSCO) reported similar earnings beats as well. By and large, the industry-wide shift towards e-commerce appears to be benefiting companies now. With that said, could one of these e-commerce stocks be top picks in the current market?
Best E-Commerce Stocks To Watch This Month
- Alibaba Group Holdings Ltd. (NYSE: BABA)
- Macy’s Inc. (NYSE: M)
- JD.com Inc. (NASDAQ: JD)
Alibaba Group Holdings Ltd.
Starting us off today is Alibaba. No doubt, as the largest name in the Chinese e-commerce industry today, BABA stock could be a go-to for investors. While e-commerce may be what it is most known for, the company has and continues to expand its tech-focused portfolio. As a result, Alibaba now has a presence in the commerce, Internet, cloud, and entertainment industries among others. Despite all of this BABA stock seems to be dealing with momentary headwinds in the stock market today.
Upon closer inspection, the current movement in the company’s shares is likely due to its latest quarterly earnings figures. In essence, Alibaba posted an earnings per share of $1.75 on revenue of $31.4 billion for the quarter. For comparison, consensus estimates were projecting gains of $1.94 and $32.09 billion respectively. On top of that, the company reportedly reduced its revenue guidance for the current fiscal year as well.
In the larger scheme of things, Alibaba appears to be seeing some setbacks amid China’s tech crackdown. Namely, the company’s tech-related businesses are likely weighing in on its overall performance. However, Alibaba’s core e-commerce division continues to show strength, posting a year-over-year revenue gain of 31%. Not to mention, the company also saw a gross merchandise volume of $84.54 billion during its Singles Day mega sales event last week. With all this in mind, should investors be buying into BABA stock’s current weakness?
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Macy’s Inc.
Macy’s is an e-commerce retailer that comprises three retail brands. Namely, they are Macy’s, Bloomingdale’s, and Bluemercury. With a robust e-commerce business, rich mobile experience, and a national stores footprint, the company is a titan in the industry. M stock is looking at gains of over 240% in the past year.
Like Kohl’s, the company also reported an impressive third-quarter today. Firstly, Macy’s posted net sales of $5.44 billion, with comparable sales up by 37.2% on an owned basis. Diluted earnings per share for the quarter were $0.76. Secondly, the company added 4.4 million new customers to its Macy’s brand. It also repurchased $300 million of shares and paid $46 million in dividends. “Our company delivered another strong quarter and exceeded our expectations on both top and bottom lines. The results were driven by the effective execution of the Polaris strategy and an improved economic environment,” said Jeff Gennette, CEO of Macy’s.
The company also announced plans to launch a curated digital marketplace to build upon its existing authority as a digitally-led omnichannel retailer. The new marketplace will expand the company’s assortment in existing categories and brands. It will also introduce a range of new categories by enabling carefully selected third-party merchants to sell their products on the company’s site. To achieve this, the company will be partnering with Mirakl, an industry-leading enterprise marketplace technology company to power its platform. Knowing this piece of news, will you consider M stock a buy?
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JD.com Inc.
Another name to consider among the top e-commerce stocks would be JD.com. Notably, it operates one of the largest e-commerce platforms in the Chinese market. The Beijing-based firm, according to its latest quarterly report posted earlier today, currently caters to over 441 million annual active customers. For a sense of scale, the company’s transaction volume from its Singles Day sales last week reportedly totaled $54.6 billion. Given all of this alongside the company’s third-quarter figures, it would not surprise me to see investors eyeing JD stock.
To highlight, the company beat Wall Street’s estimates with continued strength across its top and bottom lines. Going into the details, JD raked in a total revenue of about $33.9 billion for the quarter. This would mark a sizable 25.5% year-over-year jump. Moreover, the company also notes that its net service revenues for the quarter gained by a whopping 43.3% over the same period. This adds up to a cool $5.1 billion. According to JD President Lei Xu, the company benefited from its resilient business operations and core competencies in technology and supply chain.
Not to mention, JD is also planning to increase its overseas investments, potentially tapping international consumers. CEO Xin Lijun recently highlighted warehousing, logistics, and supply chain-based investments as areas of interest. Overall, JD continues to gain momentum going into a crucial time for the e-commerce industry. Should the company maintain its current pace, investors may want to be on the lookout for JD stock moving forward. Would you agree?
