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The e-commerce industry continues to gain strong momentum amid the coronavirus-hit global scenario on the back of door-to-door delivery services.

Shopping of grocery items, medicines and other essentials online has become a necessity amid the ongoing pandemic owing to social distancing protocol and shelter-in-place restrictions.

Additionally, the aggravating fear of catching the COVID-19 virus is driving online shopping further.

Moreover, the rapidly increasing number of coronavirus cases, increasing health risks and deaths related to the same, along with delay in the launch of COVID-19 vaccination have made people apprehensive, which in turn is leading to growing adoption of e-commerce.

Further, growing proliferation of ultrafast delivery services and solid adoption of online payment applications are constantly aiding growth of the e-commerce market.

The following growth figures are testament to the abovementioned facts.

The Global X E-Commerce ETF (EBIZ) has delivered a robust performance by gaining 47.8% on a year-to-date basis.

Further, the latest data from Adobe Analytics indicates that online sales for August surged 42% on a year-over-year basis in the United States.

Hence, we note that the e-commerce market holds promise and is expected to sustain its boom, thanks to the aforesaid factors, for the rest of 2020.

According to a report from Statista, the global e-commerce market is expected to generate revenues worth $2.4 trillion in 2020. User penetration in this market is projected at 46.6% for 2020.

Further, the fast-paced world has already made e-commerce technology part and parcel of day-to-day lives. In fact, the e-commerce market continues to grow driven by rapid proliferation of smartphones and internet on a global basis.

The same report shows that revenues in this particular space are anticipated to hit $3.3 trillion by 2024, registering a CAGR of 8.2% between 2020 and 2024.

E-commerce giant Amazon (AMZN – Free Report) is leaving no stone unturned to further strengthen the fulfilment network and delivery capabilities for capitalizing on the existing prospects in the online retail space.

Further, given this upbeat scenario, traditional retailers like Walmart (WMT – Free Report) , Target and Kroger, among others, have adopted e-commerce technology. Also, tech companies like Alphabet’s Google and Shopify are also making concerted efforts to rapidly penetrate into this space.

We believe investing in e-commerce stocks amid growing interest in e-commerce by the abovementioned companies in the current pandemic situation is surely enticing.

Our Picks

Investors can tap the potential of the following e-commerce stocks, as these are well poised to capitalize on the existing prospects in the online retail space on the back of strong fundamentals.

JD.com (JD – Free Report) is riding on the JD Retail segment, which is a key catalyst courtesy of robust omni-channel strategy. Moreover, its deepening focus on ensuring supply and fulfilment of essential products to customers during the ongoing pandemic situation remains commendable.

The company’s New Businesses segment is also a major positive. Further, strengthening momentum across JD logistics, Flash Delivery initiative, and supply chain as well as technology capabilities are other tailwinds. Moreover, the integration of AI into JD’s warehouse network is expected to continue facilitating the delivery of direct sales orders.

JD.com currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus mark for 2020 earnings has been revised upward by 20.8% in the past 60 days to $1.51 per share.

JD.com, Inc. Price and Consensus

JD.com, Inc. Price and ConsensusJD.com, Inc. price-consensus-chart | JD.com, Inc. Quote

Stamps.com (STMP – Free Report) is gaining from accelerated rate of customer acquisition and increasing shipment volume owing to the COVID-19 outbreak. Additionally, strengthening package volumes are favoring the company.
Further, the ramp up of its United Parcel Services partnership to all platforms is a tailwind. Moreover, the company’s long-term reseller agreement with the U.S. Postal Service, with benefits to higher-volume customers, remains a major positive.

Stamps.com currently sports a Zacks Rank #1. The consensus mark for 2020 earnings is pegged at $8.01 per share, which has moved north by 68.9% over the past 60 days.

Stamps.com Inc. Price and Consensus

Stamps.com Inc. Price and ConsensusStamps.com Inc. price-consensus-chart | Stamps.com Inc. Quote

Wayfair (W – Free Report) is benefiting from strength in the direct retail business. Further, the expanding active customer base is contributing to top-line growth. Furthermore, the company remains confident about the prospects in U.K. and Germany markets.

We note that it is aggressively investing in international regions in order to bolster presence, which remains a tailwind.

Wayfair currently carries a Zacks Rank #2 (Buy). The consensus mark for 2020 earnings is pegged at $2.83 per share, which improved from a loss of $4.21 per share in the past 60 days.

Wayfair Inc. Price and Consensus

Wayfair Inc. Price and ConsensusWayfair Inc. price-consensus-chart | Wayfair Inc. Quote

Groupon (GRPN – Free Report) has been benefiting from restructuring efforts and coronavirus-led e-commerce boom. The company is focusing on higher-margin healthy food offerings, which are likely to drive business growth. Also, its efforts to reduce dependence on goods deals and shifting focus on the local services market are positives.
Further, its recent partnership with Redzy remains noteworthy. It is expected to bolster customer engagement on Groupon Connect, which is its next-generation API that facilitates partners to join the marketplace relatively faster and seamlessly.

Groupon currently carries a Zacks Rank #2. The consensus mark for 2020 narrowed from a loss of $5.16 to a loss of $3.99 per share in the past 60 days.

Groupon, Inc. Price and Consensus

Groupon, Inc. Price and ConsensusGroupon, Inc. price-consensus-chart | Groupon, Inc. Quote

Fiverr International’s (FVRR – Free Report) platform — which connects people offering logo, poster and brochure designing, photoshop editing, content marketing, web analytics, translation, as well as other services with people outsourcing such work to freelancers — remains a major positive due to increasing remote working trend on account of the coronavirus pandemic.

Furthermore, the launch of four industry stores — Gaming, E-commerce, Architecture and Politics — is expected to aid the company in expanding catalog and gaining momentum across larger businesses. Also, its accelerated AI efforts through personalization and customer support are likely to drive sales in the near term.

Additionally, the company’s focus on international expansion is a tailwind. Expansion of its global marketplace to two new languages — French and Spanish — is a positive.

Fiverr currently carries a Zacks Rank #2. The consensus mark for 2020 earnings is pegged at 21 cents per share, which has been revised from a loss of 31 cents in the past 60 days.

Fiverr International Lt. Price and Consensus

Fiverr International Lt. price-consensus-chart | Fiverr International Lt. Quote

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it’s predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce “the world’s first trillionaires,” but that should still leave plenty of money for regular investors who make the right trades early.

Author: Shilpa Mete

Source: Zacks: 5 E-commerce Stocks to Buy Right Now Amid Coronavirus Woes

E-commerce continues to gain solid momentum in this coronavirus-hit world where many major sectors are facing widespread disruptions.

E-commerce, which has already become part and parcel of lives in today’s fast-paced world, is much more in demand now owing to COVID-19-led social distancing protocols, quarantine and lockdowns, and rising fears of contracting the virus.

All these are currently strengthening online retail shopping, bolstering the adoption rate of online payment solutions and boosting m-commerce user penetration rate, which in turn are driving the worldwide e-commerce market.

This is evident from the strong performance of the Global X E-Commerce ETF (EBIZ), which has gained 18.6% on a year-to-date basis.

Online Sales, Fast Delivery & Growth Figures

Notably, growing proliferation of fast delivery services being offered by online retailers as well as traditional retailers is boosting online sales in the current scenario.

E-commerce giant Amazon (AMZN – Free Report) , which is best known for its fulfilment network strength and super fast delivery services, has been witnessing a flurry of orders on account of customers’ unwillingness to visit stores.

Further, Walmart, which is making concerted efforts to expand its fast delivery services, has witnessed 74% growth in e-commerce sales in the United States in first-quarter fiscal 2021.

A survey conducted by Retail Systems Research found that 90% out of 1200 customers were hesitant to venture out for shopping at physical stores.

According to a report by Adobe Analytics, online sales rose 49% year over year in April 2020 in the United States.

Per an Ipsos MORI survey, 50% of China and 31% of Italy consumers are switching to e-commerce more often. Other countries such as Vietnam, India and Russia have witnessed an increase of 57%, 55% and 27%, respectively.

The above-mentioned discussion reflects a booming e-commerce market. Per a report by Statista, the worldwide e-commerce space is expected to cross revenues of $2.3 trillion through 2020.

Further, the report suggests that revenues are anticipated to reach $3.1 trillion at a CAGR of 8.1% between 2020 and 2024. User penetration in the market for 2020 is projected at 46.6% and is likely to reach 60% by 2024.

Year-to-Date Price Performance

Our Picks

Given the upbeat prospects, investors can tap the following e-commerce stocks as these are well-poised to beat the COVID-19 qualms on strong fundamentals.

Wayfair (W – Free Report) , which is headquartered in Boston, MA, is witnessing strong acceleration in new and repeat customer orders. Also, an expanding active customer base and strength in the company’s direct retail business remain major positives.

This Zacks Rank #1 (Strong Buy) companyis aggressively investing in international regions in order to bolster presence and expand in-house-brand offerings. All these are likely to drive Wayfair’s top-line in the near term.

Beijing, China-based JD.com (JD – Free Report) is riding on its JD Retail segment, which is the key-growth driver courtesy of its robust omni-channel strategy.

Further, the company’s New Businesses segment is amajor positive. This Zacks Rank #1 company’s strengthening momentum across third-party logistics, Flash Delivery initiative and expanding 24-hour delivery service are other encouraging factors. Also, the integration of AI into JD’s warehouse network is expected to continue accelerating the delivery of its direct sales orders.

San Jose, CA-based eBay (EBAY – Free Report) is gaining on strong momentum across its managed payment offerings, which bodes well for its gross merchandise volume. Additionally, strength in promoted listings is encouraging.

Further, this Zacks Rank #2 (Buy) company’s initiatives toward enhancing seller experience by offering innovative seller tools and delivering better buyer experience by building product catalogs utilizing structured data hold promise.

Tel Aviv, Israel-based Fiverr International (FVRR – Free Report) is benefiting from marketing efficiency, and strong focus on product and technology enhancements.

Further, the launch of four industry stores, namely Gaming, E-commerce, Architecture and Politics, is expected to aid the company in expanding catalog and gaining momentum across larger businesses.

This Zacks Rank #2 stock’s accelerated AI efforts through personalization and customer support are likely to boost sales in the near term.

Meanwhile, the leading provider of postage online and shipping software, Stamps.com (STMP – Free Report) , is gaining on ramp up inits United Parcel Services partnership to all platforms.

Moreover, this Zacks Rank #2 stock’s long-term reseller agreement with United States Postal Service is a major plus.

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.

Author: Shilpa Mete

Source: Zacks: 5 E-commerce Stocks to Buy Amid the Coronavirus Pandemic

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