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Summary
- Some of the best performing e-commerce stocks on the TSX have returned at least 20 per cent in the last three months.
- Demand for e-commerce platforms, which were already in the rise, catapulted during covid.
- Companies with technologically advanced e-commerce platforms dominate the markets.
E-commerce as a business and sector has been roaring since the outbreak of COVID 19. With tighter impositions of rules and restrictions during the pandemic, footfalls in physical stores have decreased. Stuck at home, people resorted to getting products delivered through e-commerce platforms. Investing in e-commerce stocks seems to be a desirable option for all investing public. Here are the stocks to watch out for:
- Shopify Inc. (TSX:SHOP)
Shopify is regarded as one of the most promising e-commerce companies globally. The company leverages data analytics, social media, and cloud computing for a better customer experience.
The stock posted a three months return of 19 per cent and one-year return of 31 per cent. Shopify’s current market cap is US$ 228 billion and is trading nearly 65 per cent above its 52-week low of C$ 1,109.4100 (recorded on Sept 17, 2020) and nearly 7 per cent below its 52-week high of C$ 1,974.99 (recorded on July 7, 2021). Looking at the financials, the company posted a revenue of US$ 2,929.50 million, up 46.12 per cent year-over-year (YOY) and a net income of US$ 90.2 million for the year ending December 31, 2020. The net margin of the company for the same period was 10.91 per cent, versus the industry average of 4.86 per cent. The stock closed at C$ 1,824.50 on July 8.
2. LightspeedPOS Inc. (TSX:LSPD)
LightspeedPOS Inc. is listed on TSX and headquartered in Montreal, Canada. LSPD is technologically skilled e-commerce and omnichannel platform primarily catering to medium-and small-sized enterprises. The company upgrades and nourishes its platform regularly by using the latest cloud-based features that are digitally enabled and dependable systems. The stock grew by 110 per cent in the last nine months and its one-year return is nearly 180 per cent. The stock has a market cap of C$ 13.53 billion and is trading nearly 219 per cent above its 52-week low of C$32.10 (attained on July 14, 2020) and 5.34 per cent below its 52-week high of C$109.79 (attained on July 06, 2021). The company posted a revenue of US$ 221.70 million, up 45.60 per cent year-over-year (YOY) for the year ending March 31, 2021.
- Nuvei Corporation (TSX:NVEI)
Nuvei provides a unique platform to ecommerce and mobile commerce vendors. The company has penetrated to 200 locations and transacted in 150 different currencies catering to e-commerce businesses of all sizes. The stock delivered three months return of 26.42 per cent and year-to-date (YTD) return of 34.56 per cent. The stock has a market cap of US$ 15.26 billion and is trading nearly 149.24 per cent above its 52-week low of US$ 42.00 (witnessed on September 17, 2020) and 1.23 per cent below its 52-week high of US$ 105.98 (witnessed on July 06, 2021). The company posted a total revenue of C$ 66.5 million for the year December 31, 2020 up from C$ 40.8 million, a year ago. The company has a Debt/Equity ratio of 14.85, lower than the industry average of 45.72.
4. Wecommerce Holdings Ltd. (TSXV:WE)
Wecommerce helps businesses and grow brands associated with the Shopify partner ecosystem. It develops and sells website themes, provides tailor-made solutions to agencies and other e-commerce platforms. It generates revenue from Software as a Service, themes and applications, and agencies supporting Shopify merchants.
The stock gained over 307 per cent year-to-date and is trading nearly 306.68 per cent above its 52-week low of US$ 2.95 (as on August 12, 2020). The C$ 445.32-million company posted C$21.28 million for quarter ending December 31, 2020. The company a operating loss C$3.02 million, up from loss of C$0.15 million a year ago.
Copyright © Kalkine Image 2021
5. Drone Delivery Canada Corp. (TSX:FLT)
Ontario-based Drone Delivery offers warehouse or retailer services directly shipping it to the customer’s house and any other preferred location. It is sector agnostic.
The stock is trading with outstanding shares of 223.73 million and a market cap of C$ 248.63 million. It posted an average 1 year return of 20.65 per cent. It is trading nearly 81.97 per cent above its 52-week low of C$ 0.61 (attained on Novemeber 02, 2020) and 56.47 per cent below its 52-week high of C$2.55 (attained on February 10, 2021). FLT posted a total revenue of C$0.27 million and operating losses of C$14.24 million for year ending December 31, 2020. The company’s operation were severely impacted due to the outbreak of COVID 19.
6. mdf commerce inc. (TSX:MDF)
mdf provides SaaS solutions to e-commerce clients, building a safe and friendly ecosystem conducive to trade. The stock generated a one-year return of 78.28 percent. It has total shares outstanding of 28.40 million and a market cap of C$301 million. MDF is trading nearly 86.12 per cent above its 52-week low of C$ 5.69 (attained on July 07, 2020). The total revenue earned by the company was C$78.22 million for the year ending March 31, 2021. The company has been successfully generating steady revenue over four consecutive years. This is thus a good stock to view.
