Five e-commerce stocks that could beat the pandemic blues

Summary

• Overstock.com (NASDAQ:OSTK) has a P/E ratio of 9.4 and gave a 48.18% return YTD.
• Shopify Inc. (NYSE:SHOP) has a P/E ratio of 79.47, and the stock gained 36.34% YTD.
• Wayfair Inc.’s (NYSE:W)P/E ratio is 87.29. The stock rose 23.96% YTD.

E-commerce companies have seen robust sales during the pandemic as online orders surged. Some experts believe the customers’ online shopping habits during the lockdown may have changed the rules of the business forever and helped set a new benchmark from where to start.

The reopening of the economy will give a solid impetus to physical retail sales. However, e-commerce firms will still see significant business, although they may not be at the pandemic level.

Here we explore five rising e-commerce stocks that are drawing investor attention.

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Overstock.com, Inc. (NASDAQ:OSTK) 

It is an online retailer and provides a range of products, including apparel and accessories, jewelry, watches, books, electronics, furniture, and home décor, among other items. The market cap is US$3 billion, and the P/E ratio is 9.4, with a forward P/E for one year of 28.83. 

In the June quarter, Overstock’s revenue rose to US$795 million from US$769 million in the previous year’s June quarter. The net income was US$309.78 million or US$6.47 per share diluted compared to US$34.38 million or US$0.84 per share diluted in the year-ago period. 

The stock saw a growth of 48.18% YTD and closed at US$68.05 on Aug 6, 2021.

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Source: Pixabay

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Shopify Inc. (NYSE:SHOP) 

It is an e-commerce platform for businesses. The company supports online retailers through various platforms like websites, physical stores, kiosks, etc. Its market capitalization is US$192 billion, the P/E ratio is 79.47, and the forward P/E for one year is US$983.91. 

Its revenue for the quarter ended June 30 was US$1.12 billion compared to US$714 million in the same period the previous year. The net income was US$879.1 million or US$6.90 per share diluted compared to US$36 million or US$0.29 per share diluted in the corresponding quarter of 2020. 

The stock saw a 36.34% growth YTD. It closed at US$1525.06 on Aug 6. 

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Wayfair Inc. (NYSE:W) 

It is one of the largest online platforms for homes. Its e-commerce business has over 22 million products from nearly 16,000 suppliers. Its market capitalization is US$29 billion, the P/E ratio is 87.29, and the forward P/E ratio is 299.80.

For the June quarter, its revenue was US$3.857 billion compared to US$4.304 billion in the previous year’s June quarter. The net income was US$130 million or US$1.14 per share diluted, compared to US$274 million or US$2.54 per share diluted in the June quarter of 2020.

The stock rose 23.96% YTD. The closing price was US$263.82 on Aug 6.

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Chewy, Inc. (NYSE:CHWY) 

It is an online platform for pet products. Its products include pet foods, medications, supplies, pet-health products, and pet services.

Chewy’s market capitalization is US$37.7 billion.

Its revenue for the quarter ended May 2 was US$590 million compared to US$379 million a year ago. The net income was US$38.7 million or US$0.09 per share diluted compared to the net loss of US$47.9 million or US$0.12 per share diluted in the same quarter of 2020.

The stock gave returned 1.26% YTD and closed at US$89.22 on Aug 6.

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Source: Pixabay

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Etsy, Inc. (NASDAQ:ETSY) 

It is an online platform for retailers. It sells handmade goods, jewelry, craft supplies & tools, vintage items, wedding accessories & clothing, among several other items.

The market capitalization of ETSY is US$23.5 billion, and the P/E ratio is 53.66. 

Its revenue for the June quarter was US$528 million, 23% up compared to US$428.7 million in the previous year’s June quarter. The net income was US$98.25 million or US$0.65 per share diluted compared to US$96.42 million or US$0.75 per share diluted in the same quarter the previous year. 

The stock grew 4.04% YTD and closed at US$178.36 on Aug 6, 2021.

Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.

The reference data in this article has been partly sourced from Refinitiv.