Top e-commerce stocks to explore as consumer confidence rebounds

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Top e-commerce stocks to explore as consumer confidence rebounds

 Top e-commerce stocks to explore as consumer confidence rebounds
Image source: e-commerce,Shutterstock

Highlights

  • Chewy, Inc. (NYSE: CHWY) sales increased over 26% YoY in Q2, FY21.

  • Shopify Inc. (NYSE: SHOP) revenue jumped around 46% YoY in Q3, FY21.

  • Amazon.com, Inc. (NASDAQ: AMZN) sales rose about 15% YoY in Q3, FY21.

The Covid-19 pandemic has accelerated many trends, and the e-commerce boom is one of them. As online shopping catches on, many retailers have doubled their presence in the online marketplace. E-commerce has been growing at a rapid pace since covid struck last year.

However, as the nation comes out of the pandemic and shoppers are spending more time offline, some investors seemed concerned whether the sector would maintain its growth momentum. Although it is true to some extent, the e-commerce industry still has strong potential to grow in the future as digitalization takes firm root globally.

Here we explore top e-commerce stocks catching investors' attention of late.

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Chewy, Inc. (NYSE: CHWY)

Chewy is an e-commerce company based in Dania Beach, Florida. It is an online retailer of pet foods and other pet-related products.

The shares of the company traded at US$75.115 at 10:28 am ET on November 16, up 0.47% from their closing price of November 15. Its stock value decreased by 15.91% YTD.

The firm has a market cap of US$31.49 billion, a P/E ratio of 3769, and a forward P/E one year of 1068.00. Its EPS is US$0.02.

The 52-week highest and lowest stock prices were US$120.00 and US$60.45, respectively. Its trading volume was 2,107,314 on November 15.

The company's sales increased by 26.8% YoY to US$2.16 billion in Q2, FY21. It reported a net loss of US$16.68 million against a loss of US$32.81 million in the year-ago quarter.

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E-commerce companies: CHWY, BABA, JD, SHOP, AMZN

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Alibaba Group Holding Limited (NYSE: BABA)

Alibaba is one of the leading Chinese e-commerce companies based in Hangzhou. It also has interests in the internet and the technology services sectors.

The stock of the company was priced at US$168.35 at 10:35 am ET on November 16, up 1.09% from its previous closing price. The BABA stock tumbled 26.91% YTD.

The market cap of the company is US$456.62 billion, the P/E ratio is 20.54, and the forward P/E one year is 22.15. Its EPS is US$8.20.

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The stock saw the highest price of US$280.61 and the lowest price of US$138.43 in the last 52 weeks. Its share volume on November 15 was 9,655,711.

Alibaba is expected to release its financial results for the September quarter on November 18.

Meanwhile, the company's revenue surged 34% YoY to RMB205.74 billion (US$31.86 billion) in the quarter ended June 30, 2021. On a non-GAAP basis, its net income was RMB43.44 billion (US$6.72 billion), up 10% from the same quarter of the previous year.

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JD.com, Inc. (NASDAQ: JD)

JD.com, also known as Jingdong, is one of the leading B2C online retailers in China. The e-commerce firm is based in Beijing.

The shares of the company traded at US$85.34 at 10:50 am ET on November 16, up 0.85% from their closing price of November 15. Its stock value fell 1.98% YTD. The firm has a market cap of US$132.92 billion, a P/E ratio of 24.9, and a forward P/E one year of 124.44. Its EPS is US$3.44.

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The 52-week highest and lowest stock prices were US$108.29 and US$61.65, respectively. Its trading volume was 7,317,918 on November 15.

JD.com is expected to release its third-quarter earnings results on November 18 before the opening bell.

Meanwhile, in the second quarter of fiscal 2021, the company's revenue grew 26.2% YoY to RMB253.8 billion (US$39.70 billion), while its non-GAAP net income attributable to shareholders came in at RMB4.6 billion (US$0.7 billion), compared to RMB5.9 billion (US$0.9 billion) in Q2, FY20.

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Shopify Inc. (NYSE: SHOP)

Shopify is a multinational e-commerce firm based in Ottawa, Canada. It is a cloud-based e-commerce platform that primarily offers its services to small and medium-sized businesses.

The stock of the company was priced at US$1697.62 at 11:13 am ET on November 16, up 2.48% from its previous closing price. The SHOP stock increased by 51.64% YTD.

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The market cap of the company is US$211.14 billion, the P/E ratio is 62.66, and the forward P/E one year is 413.09. Its EPS is US$26.83.

The stock saw the highest price of US$1,704.39 and the lowest price of US$880.00 in the last 52 weeks. Its share volume on November 15 was 1,473,036.

The firm's revenue surged 46% YoY to US$1.12 billion in Q3, FY21. Its adjusted net income came in at US$102.82 million, compared to US$140.75 million in the year-ago quarter.

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 Top e-commerce stocks to explore in November

Source: Pixabay

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Amazon.com, Inc. (NASDAQ: AMZN)

Amazon is one of the world’s leading technology companies. It offers various services, including an e-commerce platform, cloud computing, and other related solutions.

The shares of the company traded at US$3560.92 at 11:25 am ET on November 16, up 0.43% from their closing price of November 15. Its stock value jumped 11.27% YTD.

The firm has a market cap of US$1.80 trillion, a P/E ratio of 69.5, and a forward P/E one year of 84.87. Its EPS is US$51.12.

The 52-week highest and lowest stock prices were US$3,773.08 and US$2,881.00, respectively. Its trading volume was 2,929,719 on November 15.

Amazon's net sales surged 15% YoY to US$110.8 billion in Q3, FY21. Its net income came in at US$3.2 billion, or US$6.12 per diluted share, compared to US$6.3 billion, or US$12.37 per diluted share in Q3, FY20.

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Bottomline

Although the e-commerce sector has seen significant growth since the pandemic began, it still accounts for only about 15% of the total retail sales in the US. However, some experts believe e-commerce's share might reach around 25% of the total retail sales by 2025. The S&P 500 consumer discretionary sector rose 23.71% YTD while increasing 12.71% QTD.

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