Five eCommerce stocks to explore in September

Highlights

• Amazon.com, Inc’s (NASDAQ:AMZN) net sales surged 27% YoY to US$113.1 billion in Q2, FY21.
• The total revenue of Shopify Inc. (NYSE:SHOP) rose 57% YoY to US$1.11 billion in Q2, FY21.
• The net revenue of JD.com, Inc. (NASDAQ:JD) soared 26.2% YoY to RMB253.8 billion in Q2, FY21.

The eCommerce sector saw remarkable growth in recent months, mainly due to the pandemic as people couldn’t visit the stores. The segment grew by 9.1 percent in Q2 year-over-year, while the total retail sales jumped 28.2 percent YoY, according to the Commerce Department.

Here we explore the top five eCommerce stocks in the market.

Amazon.com, Inc. (NASDAQ:AMZN)

Amazon.com, Inc. is a major e-commerce company headquartered in Seattle, Washington. It also provides cloud computing, media streaming, AI services, etc.

The shares of the company traded at US$3462.94 at 11:37 am ET on September 3, down 0.06 percent from the previous closing price. The stock surged 8.68 percent YTD.

The Washington-based firm has a market cap of US$1.74 trillion, a P/E Ratio of 60.15, and a forward P/E one year of 66.37. Its EPS is US$57.37.

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The highest and lowest prices of the company for the last 52-week were US$3,773.08 and US$2,871.00. Its share volume was 2,925,594 on September 2.

The net sales of the company increased by 27 percent YoY to US$113.1 billion in Q2 of fiscal 2021, compared to US$88.9 billion in the same quarter of the previous year. Its operating income was US$7.7 billion, compared to US$5.8 billion in Q2 of fiscal 2020.

The net income of the company came in at US$7.8 billion, or US$15.12 per diluted share, compared to US$5.2 billion, or US$10.30 per diluted share in the year-ago quarter.

The company now expects its net sales to be between US$106.0 billion and US$112.0 billion, or an increase of 10 percent and 16 percent, respectively, in Q3 of fiscal 2021 YoY.

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Alibaba Group Holding Limited (NYSE:BABA)

Alibaba Group is based in Hangzhou, China. It is another major e-commerce company.

Its stock was priced at US$171.32 at 12:12 pm ET on September 3, down 40 percent from its previous close. The stock shed 24.51 percent YTD. Its market cap is US$464.10 billion.

The company has a P/E Ratio of 20.88, and a forward P/E one year is 20.72. Its EPS is US$8.20.

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The highest and lowest stock price of the Hangzhou-based firm for the last 52 weeks were US$319.32 and US$152.80, respectively. Its share volume on September 2 was 29,374,890.

Its revenue rose 34 percent YoY to US$31.86 billion in the June quarter of 2021. Its income from operations was US$4.77 billion, down 11 percent from the year-ago quarter. On a non-GAAP basis, its adjusted EBITDA declined by 5 percent YoY to US$7.53 billion.

The net income of the company was US$6.63 billion, or US$0.32 per diluted share in the quarter ended June 30, 2021. Its net cash from operating activities came in at US$5.20 billion. Its non-GAAP free cash flow was US$3.20 billion.

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Shopify Inc. (NYSE:SHOP)

Shopify is an Ottawa-based e-commerce company. The stock traded at US$1561.00 at 12:28 pm ET on September 3, up 1.19 percent from its previous close. Its stock rose 41.21 percent YTD.

The Canadian firm has a market cap of US$194.32 billion, a P/E Ratio of 80.39, and a forward P/E one year of 891.68. Its EPS is US$19.37.

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The highest and lowest prices of the company for the last 52-week were US$1,650.00 and US$839.40, respectively. Its share volume was 942,162 on September 2.

The total revenue of the company jumped 57 percent YoY to US$1.11 billion in Q2 of fiscal 2021. Its subscription solutions revenue surged 70 percent YoY to US$334.2 million.

The operating income of the company came in at US$139.4 million, compared to an income of US$0.3 million in Q2 of fiscal 2020. Its net income was US$879.1 million, or US$6.90 per diluted share, compared with a net income of US$36 million, or US$0.29 per diluted share in the year-ago quarter.

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eBay Inc. (NASDAQ:EBAY)

eBay Inc. is a San Jose, California-based multinational e-commerce company that provides services for both C2C (customer-to-customer) and B2C (business-to-customer).

The stock was priced at US$76.60 at 12:40 pm ET on September 3, up 0.14 percent from its previous closing price. The stock gained 48.52 percent this year. Its market cap is US$49.84 billion, while the P/E ratio and the forward P/E one year ratio are 4.09 and 23.61, respectively. Its EPS is US$18.75. The 52-week highest and lowest stock prices were US$77.83 and US$45.36, respectively. Its share volume on September 2 was 5,031,017.

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The net revenue grew 14 percent rate year-over-year to US$2.66 billion in Q2 of fiscal 2021, compared to US$2.33 billion in the year-ago quarter. On a GAAP basis, its income from continuing operations was US$294 million, or US$0.43 per diluted share, compared to US$689 million, or US$0.97 per diluted share in Q2 of fiscal 2020.

The non-GAAP net income came in at US$675 million, or US$0.99 per diluted share, compared to US$702 million, or US$0.99 per diluted share in the same quarter of the previous year. The company expects its revenue to be between US$2.42 billion and US$2.47 billion in Q3 of FY 2021.

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JD.com, Inc. (NASDAQ:JD)

JD.com is an e-commerce company based in Beijing and one of the leading B2C retail sales providers. The stock traded at US$79.14 at 1 pm ET on September 3, down 1.37 percent from the previous close. The stock fell by 7.05 percent YTD.

The Beijing-based company has a market cap of US$123.11 billion, a P/E ratio of 23.06, and a forward P/E one year of 104.21. Its EPS is US$3.44.

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The highest and lowest prices of the company for the last 52-week were US$108.29 and US$61.65, respectively. Its share volume was 9,906,151 on September 2.

The net revenue of the company jumped 26.2 percent YoY to RMB253.8 billion in Q2 of FY 2021. Its net service revenue rose 49.2 percent YoY to RMB34.1 billion.

The income from operations was RMB300.8 million compared to RMB5.0 billion in Q2 of FY 2020. Its net income attributable to ordinary shareholders came in at RMB794.3 million, compared to RMB16.4 billion in the year-ago quarter. Its diluted net income per ADS was RMB0.50 compared to RMB10.47 in the same quarter of the previous year.

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Bottomline

The e-Commerce sector saw notable growth in Q2 this year, contributing 13.3 percent of the total retail sales (US$1666.8 billion), the Commerce Department data showed. Analysts expect the sector to maintain the growth momentum with the improvement in the economy.