Making A List Of Top E-Commerce Stocks? 4 Names To Know
E-commerce stocks have exploded in value on the stock market. If you told me that this would be the case over a year ago, I would find it hard to believe you. Sure, e-commerce was an emerging part of the retail industry before the pandemic hit. Back then, the online shopping experience was merely a convenience. However, this convenience was transformed into the main mode of business for countless stores across the globe. Understandably, this is because of how perfectly e-commerce fits the needs of shoppers staying at home in the middle of a pandemic.
Right now, most businesses that managed to set up proper e-commerce systems have mostly recovered from the March lows. Companies such as Amazon (NASDAQ: AMZN) who already had solid e-commerce infrastructure in place beforehand saw their share prices skyrocket. Besides, we also saw the rise of companies like Shopify (NYSE: SHOP) who facilitated the digital acceleration of the retail industry. In the past year, SHOP stock has more than doubled in price. It is no wonder then that investors are still vigilantly looking for the best e-commerce stocks to buy now.
Having read this far, I suppose you could be interested in jumping on the e-commerce train yourself. Well, if you are, here are some top e-commerce stocks to watch ahead of the next round of stimulus checks.
Best E-Commerce Stocks To Watch Ahead Of Incoming Stimulus Checks
- Baozun Inc. (NASDAQ: BZUN)
- Overstock.com Inc. (NASDAQ: OSTK)
- CarParts.com Inc. (NASDAQ: PRTS)
- Wayfair Inc. (NYSE: W)
First off, we will be looking at the Chinese e-commerce service titan Baozun. The company facilitates online merchant growth through its e-commerce services, omnichannel coverage, and tech-driven solutions. It offers an all-in-one e-commerce solutions package covering IT solutions, store operations, marketing, and even customer service and warehousing. Impressively, it does so for multinational clients such as Microsoft (NASDAQ: MSFT) and Nike (NYSE: NKE). Just yesterday, BZUN stock saw impressive gains of over 35% during intraday trading. The stock has taken a breather this morning, falling 9.7% as of 10:05 a.m. ET.
Yesterday, Baozun announced a strategic business agreement with enterprise data solutions provider iClick. The two companies will work together to develop an e-commerce service model. Essentially, Baozun will provide its full range of services while iClick will provide its IT and system solutions. This collaboration will take place within tech company Tencent’s e-commerce ecosystem. Given the scale of operations at hand, Baozun appears to be expanding its presence in the Chinese e-commerce market. Naturally, investors would be eager to jump on BZUN stock with such positive news.
Adding to all that, the company reported stellar figures across the board in its third-quarter fiscal last November. Baozun brought in total revenue of $282 million for the quarter. It also saw substantial year-over-year gains of 63% in earnings per share and 276% in cash on hand. Given its current momentum, do you think BZUN stock is a top e-commerce stock to watch?
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Overstock is another top e-commerce player that is in focus right now. The Utah-based internet retailer mainly sells home furniture on its e-commerce website. Aside from that, it also has a tech subsidiary by the name of Medici Ventures (MV) which focuses on developing blockchain technology. Thanks to recent news regarding MV, OSTK stock surged by over 28% during yesterday’s trading session.
On January 25, Overstock announced that it would be converting MV into a limited partnership with venture capital firm Pelion Venture Partners. Overstock CEO Jonathan Johnson explained, “As we evaluated how to create the highest return for our shareholders, we determined it is time to partner with a seasoned venture capital firm to oversee the portfolio and make follow-on investment decisions. Pelion is the perfect firm to do this. It has blockchain and technology expertise with early-stage companies and has helped guide many companies to economic success.” Time will tell if this pays off for OSTK stock in the long run.
In its recent quarter fiscal reported in October, the company reported a record quarter. Overstock saw phenomenal year-over-year jumps of 110% in total revenue and 534% in cash on hand. The company cited strong sales and increase in customers as key factors of its recent performance. With all this in mind, will you be adding OSTK stock to your watchlist?
Thirdly, we will be looking at online auto parts retailer CarParts. It provides a seamless factory-to-consumer online shopping experience for everyday drivers. The company offers a wide selection of over 1 million auto parts for car repair and maintenance. Moreover, with its newest distribution center in Texas last year, it boasts two-day shipping to customers across the U.S. Given the current e-commerce tailwinds, CarParts seems poised to dominate the digital auto-retail space. In fact, its latest announcement sent PRTS stock soaring over 48% yesterday. However, it is down over 9% at 10:09 a.m. ET.
Just before yesterday’s opening bell, CarParts launched a new dedicated shopping hub for the hybrid and electric vehicle (EV) community. This is a rather smart play by the company on account of rising EV trends across major markets. For the most part, the company’s current move makes sense. It currently offers aftermarket auto-parts from established automakers such as Tesla (NASDAQ: TSLA) and Ford (NYSE: F) on the platform. The likes of which EV and hybrid vehicle owners will come to rely on as their automobiles age. CEO Lev Peker said, “The EV wave is here to stay, and CarParts.com is here to be a part of it.” Could this spell big gains for PRTS stock this year? You tell me.
Topping off our list is Massachusetts-based e-commerce company Wayfair. Similar to one of our earlier entries, the company sells furniture and home-goods. Its digital platform offers over 14 million items from 11,000 global suppliers. As consumers remain stuck at home throughout the pandemic, they would naturally turn to Wayfair for their home improvement needs. Clearly, this has benefitted W stock which is looking at gains of over 1000% since the March selloffs. You may be curious as to what the company has been up to lately to keep up its current momentum.
Earlier on Monday, the company announced a new e-commerce retail partnership from its luxury home furnishings division, Perigold. In detail, Perigold will be working together with Keaton Industries to offer customers a curated selection of luxury lighting furniture. Another announcement made by the company was that it would be investing in a local membership network in Boston. Wayfair is now a founding partner of the Boston While Black network which aims to empower local African American entrepreneurs. In return for its enterprise-focused lessons, the company will be able to survey potential local talent. All in all, it seems that Wayfair is not resting on its laurels just yet. Could it be a good time to watch W stock closely? I’ll let you decide.