Are These The Best E-Commerce Stocks To Watch Before Christmas?
Some of the top e-commerce stocks on the market have seen perhaps their best year by far. We only need to look at the likes of Shopify (SHOP Stock Report) and Etsy (ETSY Stock Report) to see this clearly. The rise in e-commerce revenue across the industry is no mystery. With coronavirus lockdowns being implemented globally, droves of people were forced to stay home. Regardless, people still needed their daily essentials and to scratch the occasional retail itch. For these reasons, e-commerce has managed to swoop in to facilitate the shift in shopping trends.
Initially, seasoned investors were extremely eager to jump on the e-commerce train. With the coronavirus pandemic ravaging the world, it seemed as though the end of the pandemic was nowhere in sight. However, key players in the biotech industry have managed to beat the odds to present us with several vaccine hopefuls over the last few weeks. Just yesterday, news broke that FDA staff are now endorsing Moderna’s (MRNA Stock Report) vaccine candidate for emergency use. This marks a crucial step toward approval. More importantly, it could mean another vaccine will be made available to the general public as early as next week. No doubt, this is great news for the fight against coronavirus. However, investors may be wary as to how this could affect their e-commerce holdings in the bigger picture.
It essentially boils down to one key question. Can some of the best e-commerce stocks to buy continue to thrive in a post-pandemic world? Your guess is as good as mine. But in the meantime, here is a list of the top e-commerce stocks to watch before Christmas.
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Best E-Commerce Stocks To Watch In December: Amazon.com, Inc.
When discussing e-commerce, it is impossible to avoid talking about Amazon (AMZN Stock Report). The e-commerce titan has dipped its toes into a wide array of fields throughout the years. These range from its cloud computing solutions to its digital streaming platform. Yes, they are all trending industries in the stock market now. AMZN stock price is up by about 67% year to date, no small feat for a trillion-dollar company.
Recently, Amazon announced a free 30-day trial for those eager to try out its services during the holidays. Considering that the general public does a whole lot of shopping during this time, it is an excellent play by Amazon. Moreover, UPS (UPS Stock Report) and FedEx (FDX Stock Report) are limiting the number of packages they will deliver this month. It seems that Amazon with its independent shipping section is in the perfect position to cover all its bases this year. As a result, it could turn out to be a very fruitful Christmas season for the company indeed.
In its recent quarter fiscal posted in October, the company does not appear to be slowing down. It saw a 37% rise in revenue year-over-year. This was followed by increases of 192% in earnings per share over the same period. With the stock trading sideways for the past month, could this be a good time to acquire some AMZN stock?
Best E-Commerce Stocks To Watch In December: Chewy Inc
Following that, we have one of the largest online retailers in the pet industry, Chewy (CHWY Stock Report). The company’s store boasts an impressive collection of over 45,000 items aimed towards its customer’s furry friends. The company’s competitive prices and fast shipping appear to be playing to the company’s benefit. The stock has more than tripled in price this year. In fact, the stock has risen by 9% this week alone. This could be due to the Wall Street Journal reporting some interesting developments earlier on Monday.
The report said Chewy is currently looking to expand its existing offerings. On top of that, there are apparently talks of monetizing the company’s telehealth veterinary (tele-vet) services. Known as Connect With a Vet, the service could prove to be a great stream of revenue for the company moving forward. This is because the company has seen a steady stream of new customers throughout the year as pet ownership has been on the rise. If the company can provide a comprehensive tele-vet service, that could be an interesting opportunity. Ultimately, this would benefit both the company and its investors in the long run as it becomes a one-stop destination for pet owners everywhere.
In terms of financials, the company reported its recent quarter fiscal just last week. In it, Chewy saw a 44% year-over-year rise in total revenue. This goes to show the power of the convenience brought about by the company’s e-commerce platform. Time will tell if Chewy can keep up its momentum in the months to come. With all that in mind, do you have CHWY stock on your watchlist?
Best E-Commerce Stocks To Watch In December: Stitch Fix Inc
Emerging e-commerce player Stitch Fix (SFIX Stock Report) is a California-based online personal styling service. Its e-commerce platform employs a combination of recommendation algorithms and data science to personalize user experiences. You can imagine how this would cater to those looking to shop for stylish outfits in these times. This has likely translated into major growth for its stock offering this year. To point out, SFIX stocks are up by 420% since the March lows. Specifically, the stock is up by more than 50% in December alone.
The recent rise has been in large part due to the release of its quarterly report earlier this month. In it, the company saw a 10% rise in total revenue year-over-year. Furthermore, Stitch Fix saw the addition of over 240,000 new active clients. Along with mentions of enhanced business infrastructure and new features to its platform, investors seem to be very impressed with this upcoming e-commerce contender.
Moving forward, Stitch Fix provided its second-quarter fiscal guidance indicating further growth. It projected a 12% to 14% year-over-year growth in total revenue for the quarter. Considering the ongoing refinements taking place with the company’s platform, Stitch Fix appears confident in its ability to deliver long-term growth. Its investors seem to feel the same based on SFIX stock’s current performance. Does this make it a top e-commerce stock worth watching? I’ll leave that up to you to decide.