Top E-Commerce Stocks To Watch This Month
As trading begins this month, some would argue that e-commerce stocks remain hot stocks to buy in the stock market today. Why? Well, for starters, many consumers continue to rely on e-commerce out of necessity amidst the current pandemic. Sure, as pandemic restrictions loosen, the fear is that e-commerce figures would take a breather. Does this make e-commerce stocks a less viable play moving forward? Not necessarily. Thanks to technology, consumers can browse catalogs across several stores for all their retail needs through their smartphones. Between driving out to numerous locations and shopping from the comfort of home, many would choose the latter. Wouldn’t you?
Moreover, e-commerce giants such as Amazon (NASDAQ: AMZN) and Shopify (NYSE: SHOP) continue to wow investors amidst this earnings season. On one hand, Amazon posted an earnings per share of $15.79 on revenue of $108.5 billion for the quarter. With the company expecting to post revenue between $110 billion and $116 billion in Q2, Amazon appears confident about maintaining its current momentum. On the other hand, e-commerce enabler Shopify saw its revenue more than doubled year-over-year in its recent quarter fiscal. The company also posted an earnings per share of $2.01, more than triple Wall Street’s estimates. Like it or not, e-commerce remains a crucial industry in our world today. Having read all of this, you might be looking to invest in some of the best e-commerce stocks yourself. If you are, here are four making headlines in the stock market now.
Top E-Commerce Stocks To Buy [Or Sell]
- Jumia Technologies (NYSE: JMIA)
- Home Depot Inc. (NYSE: HD)
- Alibaba Group Holding Ltd (NYSE: BABA)
- Pinduoduo Inc. (NASDAQ: PDD)
Jumia Technologies AG
Jumia is a leading pan-African e-commerce platform. Also, its platform essentially consists of its marketplace, which connects sellers with consumers. Its logistic service enables shipment and delivery to consumers across the continent. Furthermore, the company also has a payment service, JumiaPay, which facilitates transactions among participants active on its platform. Jumia is active across 11 countries in Africa that spans a population of over 600 million people. JMIA stock currently trades at $32.02 as of 3:18 p.m. ET.
In February, the company reported its fourth-quarter and full-year 2020 financial results. Gross Merchandise Value for the quarter was an impressive $278 million, which increased sequentially by 23%. The company posted a gross profit of $33 million, a 12% increase compared to a year over. Jumia also provided a business update on Jumia Advertising. In 2020, its advertising segment ran over 1,000 campaigns with various high-profile partners like Unilever (NYSE: UL) and L’Oreal (OTCMKTS: LRLCY). To support long-term growth for the company, it continues to establish strong relationships with brands and advertising agencies. Given all this, will you consider buying JMIA stock?
Home Depot Inc
Home Depot is the largest home improvement retailer in the U.S. that supplies tools, construction products, and services. Basically, it operates many big-box format stores across the U.S. and in all 10 provinces of Canada. The company employs approximately 500,000 associates and has a total of 2,298 retail stores. It also boasts an impressive e-commerce channel that saw an 83% digital sales growth year-over-year. HD stock currently trades at $331.12 as of 3:19 p.m. ET and has been up by over 20% since the start of March.
In its fourth-quarter financials that were posted in February, Home Depot reported sales of $32.3 billion, a 25.1% increase year-over-year. Comparable sales increased by 24.5%. The company also posted a diluted earnings per share of $2.65 for the quarter. During the quarter, the company enjoyed a record level of sell-through for decorative holidays and saw double-digit growth from both its pro and DIY customers. Also, the company announced that it increased its quarterly dividend by 10% to $1.65 per share. With so many exciting things happening to the company, will you consider adding HD stock to your portfolio?
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Alibaba Group Holding Ltd
Alibaba is a company that provides the technology infrastructure and marketing reach to help merchants and businesses to engage customers. It is one of the world’s largest retailers and e-commerce companies. The company is also one of the biggest venture capital firms with one of the biggest investment corporations in the world. BABA stock currently trades at $231.54 as of 3:19 p.m. ET.
In February, the company announced its quarter that ended in December 2020. Firstly, the company reported a revenue of $33.8 billion, a 37% increase year-over-year. Its annual active consumers in its China retail marketplace reached a staggering 779 million. Net income for the quarter was $11.9 billion.
CEO Daniel Zhang had this to say, “Our cloud computing business continues to expand market leadership and show strong growth, reflecting the massive potential of China’s nascent cloud computing market as well as our years of investment in technology. Looking ahead, we are confident that we will continue to create value for our customers, lead with innovation and make our contributions to society.” With that in mind, is BABA stock a top e-commerce stock to buy ahead of its earnings on May 13?
Another top player to watch in the e-commerce industry now would be Pinduoduo. Similar to our previous entry, Pinduoduo operates in China. In brief, the company boasts the largest agriculture-focused tech platform in the region. Essentially, Pinduoduo directly connects farmers and distributors with consumers through its platform. Although the premise appears simple, many investors would consider PDD stock a go-to play on China’s booming e-commerce industry now. In fact, the company’s shares are currently looking at gains of over 190% in the past year. Could PDD stock have more room to grow moving forward?
If anything, the company’s latest operational update could give us a clearer understanding of this. According to Pinduoduo, it has connected more than 12 million farmers directly to its users over the past six years. From its recent quarter fiscal posted last month, it was also revealed that Pinduoduo now has over 788 million users. The likes of which boosted the company’s gross merchandise value to a grand total of $255.6 billion for the quarter. Notably, this marks a 66% year-over-year surge. Not to mention, Pinduoduo’s vital role in the Chinese agricultural industry would also add to its long-term growth potential. Could you see PDD stock continue to flourish because of this?