Should Investors Be Watching These Top E-Commerce Stocks In The Stock Market Now?
As we enter another week of trading, e-commerce stocks could be worth watching in the stock market now. For the most part, this would be due to key data on the U.S. jobs market this week. In detail, investors will likely be keeping an eye on notable industries ahead of the Labor Department’s September jobs report. By current estimates, payroll gains throughout the month could come in at 475,000. This would be a significant month-over-month increase from August’s 235,000, possibly signaling a recovering job market.
By extension, some would argue that this could cause consumers to have more funds to be put towards e-commerce. Not to mention, there is also the factor of year-end sales and shopping to consider. Retailers such as Target (NYSE: TGT) are already ramping up their online store offerings now. At the same time, companies across the board are also looking to get a slice of the digital commerce pie. This is evident as Facebook (NASDAQ: FB) and Roku (NASDAQ: ROKU) are among the growing number of tech firms partnering up with Shopify (NYSE: SHOP). In essence, both companies are now expanding their e-commerce-related market reach through Shopify.
Overall, from big names like Alibaba (NYSE: BABA) to emerging players like ContextLogic (NASDAQ: WISH), one thing is certain. There are plenty of entry points for investors eyeing the best e-commerce stocks in the stock market today. Adding to that, the industry remains relevant as we are still amidst a global pandemic. This could see shoppers flocking to digital stores for another year this upcoming holiday season. With all that said, here are three top e-commerce stocks to note now.
Best E-commerce Stocks To Watch This Month
- Amazon.com Inc. (NASDAQ: AMZN)
- Etsy Inc. (NASDAQ: ETSY)
- Stitch Fix Inc. (NASDAQ: SFIX)
Amazon.com Inc.
To begin with, we will be taking a look at Amazon. It would be hard to discuss the top e-commerce stocks without mentioning this industry goliath. No doubt, Amazon is a leading name in the e-commerce space. This is evident given its several hundred billion dollar operations that span across the globe. To put things into perspective, Amazon posted a total revenue of over $100 billion for the past three consecutive quarters. In its latest fiscal quarter, the company saw year-over-year increases of over 46% in both its net income and earnings per share. As such, it would make sense that investors are watching AMZN stock in general.
Notably, Amazon does not seem to be resting on its laurels just yet. Just last week, the company revealed a vast array of tech hardware in its fall hardware event. This ranges from its latest line of Alexa-enabled smart speakers and smart displays to a variety of smart-home devices. Among the more notable announcements would be the company’s home robot, Astro. Coming in at $999 a unit, Astro could mark a bold yet exciting play by the company.
According to Amazon, Astro is chocked full of sensors allowing it to autonomously operate in buyers’ homes. The robot boasts a slew of features such as home security, answering voice commands, and even acting as a media playing device. With Amazon looking to expand beyond its e-commerce marketplace and cloud offerings, AMZN stock could be in focus. Would all this make it a top watch for you?
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Etsy Inc.
Another name to consider in the e-commerce world now would be Etsy. In brief, the company primarily operates via its digital marketplace of the same name. Through Etsy, consumers have access to a vast selection of handmade and vintage items alongside craft supplies. Additionally, the platform also offers apparel, home decorations, and accessories as well. Sure, the rise in consumers looking to get into crafts during the pandemic lit a fire under ETSY stock. Even now, the company’s shares are still holding on to gains of over 500% since its pandemic era low.
While all this is great, the real question is whether investors should be jumping on ETSY stock now. Well, for one thing, analysts over at Needham appear to believe so. Namely, analyst Anna Annadreeva hit the company’s shares with a Buy rating and a price target boost to $280. The analyst argues that Etsy’s “best-in-class combination of growth and profitability” is a key reason for this upgrade. Meanwhile,the company is also growing its operations across the board this year.
Evidently, the company now owns Depop and Elo7. For starters, Depop is a community-based apparel marketplace that mostly caters to Gen Z. This would suggest that Etsy is actively looking to expand its wares and offerings to new markets. Following that, the company’s purchase of Elo7 marks a significant expansion into the growing Brazilian e-commerce market. Given the company’s aggressive growth-focused moves, will you be investing in ETSY stock for the long term?
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Stitch Fix Inc.
Last but not least is Stitch Fix. For the uninitiated, the San Francisco-based company mainly provides customers with apparel. Through its online personal styling services, buyers receive curated shipments of clothing items and accessories. The likes of which are selected by Stitch Fix via its recommendation algorithms and data science systems. In theory, this could add an element of surprise to the customer experience. For consumers looking to spice up their wardrobes but have trouble picking out clothes, Stitch Fix offers a viable solution.
As a result of all this, SFIX stock continues to make waves in the stock market now. Despite concerns over the company’s post-pandemic prospects, Stitch Fix continues to deliver on the financial front. This is evident as the company posted stellar figures in its latest fiscal quarter report. In it, Stitch Fix posted a total revenue of $571 million, marking a sizable 29% year-over-year increase. Moreover, the company also saw year-over-year surges of over 143% in both its net income and earnings per share. In the larger scheme of things, CEO Elizabeth Spaulding noted that Stitch Fix achieved an annual net revenue of over $2 billion, a first for the company.
If all that wasn’t enough, the company also recently launched a new service, Stitch Fix Freestyle. With Freestyle, Stitch Fix is essentially extending its machine learning-based software to provide conventional online shopping. What this means is that users can now instantly buy individual items recommended to them by the company. This would be a strategic play by the company as it provides customers with more freedom without sacrificing the personalization aspect of the Stitch Fix experience. As such, could SFIX stock be worth keeping an eye on for you?
