3 E-Commerce Stocks For Your June Watchlist
As we continue to see U.S. vaccination and stimulus efforts strengthen the economy, the retail industry could gain momentum. In particular, some of the top e-commerce stocks in the stock market now would be in focus. For the most part, this would be the case as consumers would be eager to spend their saved-up pandemic funds. Sure, some would argue that e-commerce trends could slow as we see the return of brick-and-mortar operations across the country. But, digital shopping offers one key benefit over in-person shopping, convenience. You can’t deny that consumers have spent the past year shopping online more than ever. Now, it has simply transformed from a matter of necessity towards a quality of life service. Because of this, investors and companies alike could stand to benefit.
Even now, some of the biggest names in the e-commerce space continue to bolster their services and offerings. For instance, we could look at the likes of Chinese e-commerce giant, Alibaba (NYSE: BABA) now. Just this week, the company launched its interactive cloud-based Livestream shopping service. On top of that, CTO Cheng Li recently revealed plans to develop autonomous delivery trucks over the next year. Truly, the integration of tech and retail, that is, e-commerce, continues to push boundaries. Understandably, this appears to be the industry working hard to retain the customers it gained throughout the pandemic.
Meanwhile, even conventional retailers who quickly adopted e-commerce practices are flourishing now. Take Restoration Hardware (NYSE: RH) and Signet Jewelers (NYSE: SIG). RH is a high-end furniture retailer, while Signet is the largest retailer of diamond jewelry. Both RH stock and SIG stock have more than tripled in value over the past year. On that note, here are three top e-commerce stocks worth noting in the stock market today.
Top E-Commerce Stocks To Buy [Or Sell] Now
Chewy is an e-commerce company that focuses on pet products and services. It aims to be one of the most trusted and convenient destinations for pet parents everywhere. The company is currently a preeminent for pet products, supplies, and prescriptions due to its broad selection of high-quality products. It also develops innovative ways for customer engagements and partners with more than 2,500 of the best brands in the pet industry. CHWY stock currently trades at $75.08 as of 2:27 p.m. ET and is up by over 50% in the last year. Yesterday, the company reported strong first-quarter 2021 financial results.
Firstly, the company reported net sales of $2.14 billion, growing by 31.7% year-over-year. Net income for the quarter was $38.7 million. This great start to the year is looking to be an exciting and busy time for the company. The company also said that it has continued to execute its growth roadmap, expand its database, and increase its addressable market-expanding verticals. Despite its main business being pet retail, the company also has been expanding on its telehealth services for pets.
In May, the company expanded its proprietary and popular telehealth service called Connect with a Vet. It introduced a series of features enhancing the experience of customers and veterinarians. This would include video consultation, the ability to preschedule a virtual vet consultation, and extended hours of operation, including weekends. These features will no double help make pet health and wellness more accessible and affordable everywhere. For these reasons, will you consider adding CHWY stock to your portfolio?
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Next on this list is e-commerce titan, Amazon. Amazon is a multinational technology company that focuses on e-commerce and has a portfolio of tech services. This would include cloud computing, digital streaming, and artificial intelligence. In brief, it also has one of the largest online marketplaces in the world by revenue. The company is also one of the world’s most valuable companies and one of the highest global brand valuations. AMZN stock currently trades at $3,344.62 as of 2:28 p.m. ET. In late April, the company reported its first-quarter financials.
The company posted net sales of $108.5 billion, an increase of 44% year-over-year. Net income increased to $8.1 billion in the first quarter or diluted earnings per share of $15.79. Operating income increased to $8.9 billion in the first quarter, more than doubling from a year earlier. The company stated that as its Prime Video streaming service turns 10, it boasts over 175 million members that have streamed shows and movies in the past year. Streaming hours are up by more than 70% year-over-year.
The company’s Amazon Web Services (AWS) has become a $54 billion annual sales run rate business, competing against the world’s largest technology companies. AWS also continues to enjoy growth and is up by 32% year-over-year. AWS also announced significant customer momentum, with new commitments and migrations from customers spanning many major industries. This would include Walt Disney’s (NYSE: DIS) Disney+ expansion to more than 100 million subscribers worldwide. Given all of this, won’t you say that AMZN stock is a top e-commerce stock to consider buying?
Topping our list today is the leading e-commerce enabler, Shopify Inc. For some context, the company maintains and operates its proprietary e-commerce platform of the same name. On the Shopify platform, retailers across the globe can start, grow, market, and manage online stores of varying sizes. Shopify currently facilitates over 1.7 million businesses across 175 countries via its platform for a sense of scale. As it stands, SHOP stock is currently trading at $1,236.80 a share as of 2:28 p.m. ET. Despite its current valuation, could it have more space to grow moving forward?
For one thing, the company does not appear to be slowing down anytime soon. This is evident as Shopify continues to grow its market reach and services with major partnerships. Firstly, the company is currently working with Google (NASDAQ: GOOGL) to connect Shopify merchants with consumers through Google Search. No doubt, this would significantly boost the exposure of Shopify’s offerings, to say the least. Now, Shopify products will appear across Google’s daily 1 billion shopping-related searches, according to the duo.
While this is great for the company, it continues to grow its collaborations list. This week, news broke of Shopify’s team-ups with financial firm Affirm (NASDAQ: AFRM) and streaming giant Netflix (NASDAQ: NFLX). With Affirm, Shopify now brings Shop Pay installments to buyers. Shopify found that their average order volumes gained by up to 50% by allowing merchants early access to Shop Pay installments. Moreover, Netflix is reportedly selling merchandise from its increasingly popular line of self-produced series. Overall, Shopify appears to be firing on all cylinders now. Would this make SHOP stock a top buy for you?