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Best Stocks To Buy Today? 4 E-Commerce Stocks For Your Watchlist

With rising adoption, these e-commerce stocks continue to gain attention from investors.

stocks to buy today

E-commerce stocks remain some of the most enticing stocks for investors in the stock market today. In general, many investors prefer to invest in what they know. Well, e-commerce companies surely fit the bill. After all, the global pandemic has forced many people to utilize e-commerce platforms to purchase essential goods. According to a market research company eMarketer, global e-commerce retail sales rose by 25.7% to $4.2 trillion last year. It even predicts that by 2025, global e-commerce retail sales may reach $7.4 trillion. 

Safe to say, e-commerce stocks are in a prime position to capitalize on this long-term growth trend. In fact, even social media companies such as Pinterest (NYSE: PINS) and Facebook (NASDAQ: FB) are jumping on the bandwagon. On one hand, Pinterest offers its users augmented reality (AR) features to improve their shopping experience. On the other hand, Facebook already has Instagram Shops and Facebook Marketplace within its apps. Having said all that, here are the 4 top e-commerce stocks to buy in the stock market today. 

Best E-commerce Stocks To Buy [Or Sell] This Week

Sea Limited

First, we will be looking at Sea. The company’s business segments include digital entertainment, e-commerce, and digital financial services. Shopee is the company’s e-commerce platform that allows users a shopping environment supported by multiple value-added services. SE stock has been on a strong bullish trend this year. It has risen over 80% since the start of the year.

According to Reuters, Shopee is preparing to launch in Poland and is currently recruiting sellers. This expansion into the European e-commerce market would be the first for the company on the continent. However, its gaming arm Garena already has an existing presence in the region. It appears that Poland’s e-commerce market is worth up to $19 billion and with significant room for growth. If this business endeavor is proven to be successful, there will be more opportunities to expand to other neighboring countries.

Financially, Sea has also been firing on all cylinders. During its second quarter, the company’s GAAP revenue was $2.9 billion, an increase of a whopping 158.6% year-over-year. Meanwhile, its total gross profit was $930.9 million, an increase of 363.5% year-over-year. Most importantly, Sea continues to rank first in the Shopping category by average monthly users and total time spent in-app in Southeast Asia. Overall, the reception of the company’s e-commerce platform in its target markets has been mostly positive. So, would you consider investing in SE stock?

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Pinduoduo 

Following that, we have the Chinese e-commerce company, Pinduoduo. Essentially, the company’s services mainly involve connecting agricultural producers to consumers. While most of its competition in the space focuses on consumer discretionary items, Pinduoduo provides daily necessities. Through its mobile-only marketplace, the company currently serves over 738 million monthly active users.

Investors appear to be shifting their focus back to some of the top Chinese stocks as their depressed valuation seems like an opportunity that’s too great to pass on. For instance, we are seeing some signs of recovery as PDD stock has risen over 10% over the past month. After all, the company does have a strong second-quarter earnings report to back this movement. Pinduoduo posted revenues of $3.5 billion for the quarter, up by a whopping 89% year-over-year. Also, its operating profit was $309.4 million this quarter. That compares with an operating loss of $253.0 million in the prior year’s quarter. 

Furthermore, it also announced that it would launch a “10 Billion Agriculture Initiative” to face and address critical needs in the agricultural sector. With this, the company hopes to train younger talent to set up agri-businesses and improve downstream market access for farmers. So, would these factors justify a buy call for PDD stock?

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JD.Com 

Another top e-commerce company in focus would be JD.Com. The company mainly operates through two segments, JD Retail, and New Business segment. JD Retail consists of online retail, online marketplace, and marketing services in China. Consumers could shop for electronic products, home appliances, and other general merchandise on its online marketplace. JD stock has climbed over 10% over the past month.

The company announced its second-quarter earnings last month. It posted net revenues of $39.3 billion, up by 26.2% year-over-year. The strong sales for the quarter can be attributed to its 618 Grand Promotion which also helped the company add 32 million new users. In fact, the number of active customer accounts is now at 513.9 million, up by 27.4% from the same quarter last year. These are strong financial numbers that many investors could not ignore given its current price point now.

It is also noteworthy that the company has appointed Mr. Lei Xu as President of JD.com, Mr. Lijun Xin as CEO of JD Retail, and Mr. Enlin Jin as CEO of JD Health International, effective immediately. With this in place, the company CEO, Mr. Richard Qiangdong Liu, will have more time to formulate long-term strategies for the company and mentor younger management for the future of the company. All things considered, would you add JD stock to your portfolio?

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Best Buy 

Best Buy is a provider of consumer technology products and services. In detail, the company specializes in the retail of consumer electronics, home-office products, and appliances. Not to mention, the company has over 1,000 stores across the U.S., Canada, and Mexico. With home improvement spending surging amidst the pandemic, Best Buy’s offerings would be in demand. 

Recently, the company launched an e-transportation category online and in select stores. Consumers could choose from e-bikes, scooters, mopeds, and accessories from some of the best names in the industry. Best Buy believes that these transportation innovators will play a significant role in helping people cruise into a new era of commuting.

In addition, we also saw a better-than-expected second-quarter financial update from the company. Its enterprise comparable sales increased by 20% to $11.8 billion. Also, its GAAP diluted EPS increased by a staggering 76% to $2.90. With all these in mind, would you consider BBY stock a top e-commerce stock to buy?

By Jonathan Phillip

Jonathan Phillip is an up and coming financial contributor in the stock market today. He's found a strong niche in writing about true growth industries. His main focus for the last 5 years has been on the cannabis industry and marijuana stocks. He is one of the top contributors to cannabis media outlets like MarijuanaStocks.com. He also is head of social media management for StockMarket.com.

Since an early age, Jonathan has been an active member of the cannabis culture. Coming from Miami, Florida, he's been able to identify emerging trends in the space including the emergence of cannabis derivatives, vapes, e-liquids, wax, and more. His ability to identify emerging niches has afforded him the ability to source valuable information from top industry names.

Jonathan has also managed to build a strong social media presence for companies. He has worked with hundreds of public companies to develop a digital presence. As an active blogger and social media influencer, his focus is on lifestyle segments of the market. You can find Jonathan reporting on anything from industry conferences and investor events to corporate disclosures and cannabis market movers.

Since the early days of marijuana companies going public, Jonathan has made it a point to find information before the crowd. The main target of his writing is on undiscovered or under-researched companies that could hold true, lasting market potential. Through his research, Jonathan has managed to be one of the early writers to identify the opportunity of cannabis over other things like alcohol and he was one of the first reporters to cover the multi-billion dollar deals that materialized in 2017 and 2018. He has also covered the emergence of multi-state operators in the U.S. after Canada paved the way in late 2018 and 2019 for legalization in North America.

Jonathan is also an active member of the underground hip-hop scene. He has worked with some of the biggest names in the rap community while also gaining valuable insight from top producers and business moguls focused on moving brands forward. In his free time, Jonathan builds social communities and continues to hone his skills as a leading financial writer.

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