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5 Top E-Commerce Stocks To Watch Right Now

Should investors be keeping a close eye on the e-commerce industry now?
The post 5 Top E-Commerce Stocks To Watch Right Now appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket.com.

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Do You Have These E-Commerce Stocks On Your List Right Now?

The year 2021 was a mixed year for e-commerce stocks. While many existing and new companies continue to grow, their stock prices did not follow. After all, e-commerce stocks were among the biggest winners in the stock market during the pandemic while their brick-and-mortar counterparts were negatively affected. So, now that people are comfortably stepping outdoors again, physical retail is also back in business. However, could the current sell-off of e-commerce stocks be slightly overblown? Like it or not, the industry still has considerable growth prospects going forward. 

Besides, the industry rarely lacks exciting developments. Recently, we saw two e-commerce giants in their respective regions forming a partnership. Chinese online retailer, JD.com (NASDAQ: JD) has entered a partnership with Shopify (NYSE: SHOP). In brief, the deal will allow Shopify merchants to list their products on JD’s cross-border ecommerce platform JD Worldwide. As a result, this will help global brands tap into China’s massive appetite for imported goods. With that in mind, let’s take a look at some of the best e-commerce stocks to watch in the stock market today. 

Best E-commerce Stocks To Watch In January 2022

MercadoLibre

MercadoLibre is one of the largest e-commerce companies in Latin America. Essentially, the company enables commerce through its marketplace platform. The platform is designed to provide users with a portfolio of services to facilitate commercial transactions. For those unaware, Latin America is widely considered the fastest-growing e-commerce region in the world. So, it should not come as a surprise that MELI stock is often mentioned among the top e-commerce stocks. 

best tech stocks to buy now (MELI stock)

Yesterday, the company acquired shares in the 2TM Group and made a strategic investment in Paxos. 2TM Group is a parent company of MercadoBitcoin.com among others in its blockchain-based portfolio.

Meanwhile, Paxos is a blockchain company that offers crypto investments. Safe to say, these investments reinforce MercadoLibre’s commitment to the development and use of crypto assets and blockchain technology. With that in mind, would you be buying MELI stock?

Walmart

Unlike Mercadolibre which has been a force to be reckoned with in the e-commerce space, Walmart is one of the largest traditional retail operators in the world. That said, the current e-commerce trend has driven the company to bring its products and services online.

best retail stocks (WMT stock)

The company offers an assortment of merchandise and services at everyday low prices. Now, let us see what new e-commerce initiatives the company has been committing to lately.

Recently, Walmart announced plans to build a fulfillment center in Olive Branch. The center aims to support the company’s rapidly increasing supply chain network and e-commerce business. With an estimated size of 1,000,000+ square-foot, it will store millions of items from the company’s everyday-low-priced merchandise and be ready to be shipped directly to customers at a great speed. Given this exciting development, would WMT stock deserve a place on your watchlist?

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Etsy

Another top e-commerce company to note would be Etsy. In detail, the company operates two-sided online marketplaces that connect buyers and sellers around the world. Etsy stands out by being the global destination for creative goods. Sellers will have access to a range of tools and services that address key business needs.

best e-commerce stocks (ETSY stock)

For instance, Etsy sellers can pay for placement of their listings in search results, and have Etsy Shipping Labels. Unfortunately, ETSY stock has been sliding downwards over the past month. However, could this be an investment opportunity for the long term?

Well, some analysts seem to think so. For starters, Edward Yruma of KeyBanc upgraded ETSY stock to Overweight in a recent research report. He believes that there is a good chance that the company may boost its revenue by three times on a long-term basis. Also, another analyst from Jefferies maintained his Buy rating despite a strong pullback in Etsy’s stock price. He, too, believes that this could be a compelling buying opportunity. If you share the same sentiment as they do, would you consider adding ETSY stock to your watchlist?

Global-e

Global-e is an Israel-based company that develops the e-commerce platform of the same name. It enables direct-to-consumer cross-border e-commerce. Retailers can increase international traffic conversion and sales through its end-to-end solutions that combine localization capabilities, big-data business intelligence models, and cross-border experience. Despite the bearish sentiment around the industry right now, GLBE stock has still risen more than 40% over the past year. 

GLBE stock

The company started the year by announcing the closing of its acquisition of Flow Commerce. For the uninitiated, Flow is a tech-based cross-border e-commerce software solution for emerging brands.

Hence, by adding Flow’s robust API-based technology to the company’s ecosystem, Global-e will be well-positioned to provide small merchants with the best solution that tailors to their needs. Not to mention, it could also allow Global-e to expand the scope of its exclusive relationship with Shopify to offer certain cross-border services. Keeping this in mind, would GLBE stock be one to watch for the future?

[Read More] Top Stocks To Buy Now? 4 Renewable Energy Stocks For Your Watchlist

Amazon

To sum up the list, we have to include one of the largest e-commerce companies in the world, Amazon. The company engages in the retail sale of consumer products and subscriptions around the world. For most parts, it sells merchandise and content purchased for resale from third-party sellers. That said, Amazon is now a tech conglomerate that often pushes its boundaries with a focus on innovation. For example, the company’s Amazon Web Services (AWS) is a comprehensive and broadly adopted cloud platform. 

best tech stocks (AMZN Stock)

Earlier this week, Amazon said it will be launching an apparel store called Amazon Style. The first store will be located in the Los Angeles suburb of Glendale, California. In the past, Amazon has explored physical stores for selling books but never clothes. The store will feature women’s and men’s apparel, shoes, and accessories from a mix of well-known and emerging brands.

On top of that, the managing director of Amazon Style claims that consumers will “find everything from the $10 basic to the designer jeans to the $400 timeless piece.” Safe to say, Amazon is targeting every consumer group. With all said and done, would you still consider AMZN stock a top e-commerce stock to buy today?


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The post 5 Top E-Commerce Stocks To Watch Right Now appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket.com.

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Economics

Best Day For Discretionary Stocks Since COVID-Crash As Consumer Recession Bets Get Steamrolled

Best Day For Discretionary Stocks Since COVID-Crash As Consumer Recession Bets Get Steamrolled

A week ago, following dismal guidance by Walmart,…

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Best Day For Discretionary Stocks Since COVID-Crash As Consumer Recession Bets Get Steamrolled

A week ago, following dismal guidance by Walmart, Target indicated that it is seeing a shift in the consumer wallet away from the pandemic purchases and into reopening purchases - including apparel - and the pace of this shift caught some retailers off guard on inventory. WMT, COST, and TGT all saw their stocks fall sharply last week as investor concerns around a US consumer slowdown mounted and investors reconsidered just where, if anywhere, you can play "defense" in the current market.

But as Goldman's Chris Hussey writes today, this week, results from companies like DKS, Macy's, JWN, WSM, DLTR, and DG painted a decidedly different picture.

Deep discount retailers Dollar Tree - or rather Dollar 25 Tree - and Dollar General both posted strong results and DLTR raised top-line guidance.

Which isn't surprising: as we discussed in "Middle Class Is Shutting Down As Spending By The Rich Remains Robust" when consumers are trading down - as they are doing now due to Biden's runaway inflation - dollar stores see more business.

As a result, Dollar Tree surged as much as 20% on Thursday, the biggest intraday move since October 2020. Evercore ISI said Dollar Tree's move to a "$1.25 price point" last November from $1 “came in the nick of time" adding that "given the broad-based inflationary cost pressures, the 25% price increase drove material sales and margin upside for both the namesake division and the total company," wrote analyst Michael Montani who also said that while freight, transport, and labor headwinds are real, some of the pressure cited by Target last week was likely company specific.

The analyst concluded that the read-across from DG and DLTR is “favorable,” and it seems that the low-end consumer is “hanging in better than initially thought.” Or rather, the middle-class is getting crushed and it has no choice but to trade down to the cheapest retail outlets.

And with countless shorts having piled up and getting massively squeezed, the S&P 500 Consumer Discretionary Index today has risen as much as 5.6%, its best day since April 2020, as optimism on the health of the consumer returns following a string of better-than-expected earnings reports from retailers.

Top performers in the S5COND index include Dollar Tree, Dollar General, Norwegian Cruise, Caesars Entertainment and Carnival; the Discretionary Index is on pace for its best week since March 18, when the group climbed 9.3%; the index sank 7.4% as Walmart and Target reports spooked investors. The index is still down almost 30% YTD.

"Retail earnings are bullish.... with four blow-outs,” said Vital Knowledge’s Adam Crisafulli, referring to quarterly reports from Williams-Sonoma, Macy’s, Dollar General, and Dollar Tree.  “The overall retail industry is experiencing stark changes and the market is incorrectly conflating these shifts with underlying demand weakness when the actual health of the consumer is much better than it seems,” Crisafulli says, although there are many - this website included - who wholeheartedly disagree with his optimistic view of the US consumer.

Remarkably, thanks to today’s rally, even Burlington Stores, which sank as much as 12% in premarket on disappointing results, is trading up as much as 11% and some say, the rally helped reverse the earlier tumble in NVDA shares.

The discretionary group is also getting a boost from airline operators Southwest and JetBlue, helping travel-related names, while on the economic front, better-than-expected personal consumption (for the revised Q1 GDP print). and jobless claims may be adding to the bullishness according to Bloomberg.

Tyler Durden Thu, 05/26/2022 - 15:00

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Restaurants’ Share Of Food-Dollar Grows To Record 54.9% In April

Restaurants’ Share Of Food-Dollar Grows To Record 54.9% In April

By Nation’s Restaurant News

Restaurants continued to increase their share…

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Restaurants' Share Of Food-Dollar Grows To Record 54.9% In April

By Nation's Restaurant News

Restaurants continued to increase their share of spending in April, reaching 54.9% of the food dollar, according to U.S. Census data released Tuesday. That was a 260-basis-point increase from April last year, when the share was 52.3%, said analyst Mark Kalinowski, president and CEO of New Jersey-based Kalinowski Equity Research LLC.

“Even more impressively, as best as we can tell, this 54.9% market share figure for April 2022 is an all-time monthly high for the U.S. restaurant industry,” Kalinowski said in a note released Tuesday about the April U.S. Census data.

Kalinowski said restaurants, especially multi-unit public chains, were increasing prices but at a more modest rate than retail groceries.

“The key takeaway from this is you have a lot of menu prices going up in the restaurant industry,” he said in an interview.

“And, of course, the fear anytime you're raising your menu prices is that customers will trade down, but that hasn’t happened.”

Kalinowski noted that while restaurant brands were increasing prices, the rate of hikes was less than in grocery prices.

“If you need to eat — and I haven't yet met the person who didn't need to eat — you have got to buy the food from some place unless you're growing it yourself or you have a neighbor who grows it,” he said. “The fact is the restaurant industry offers a lot of convenience. It offers experiences that the grocery stores can't match.

“It is so firmly a part of the American fabric now that Americans don't necessarily want to cut their restaurant spending,” Kalinowski said.

The analyst also noted that larger restaurant brands were being very calculated in how they were raising prices to offset their increased commodity and labor costs.

For example, Kalinowski noted, “McDonald's looks at the food at home inflation and takes that into account with their menu pricing. I would imagine there's definitely a lot of other chains out there that have gotten a little more sophisticated with how they take their menu pricing.”

Those judicious price increases are easier for large, multi-unit chains to institute than for independent restaurants, he noted.

“Independents lack the scale advantages that large chains have,” he said, “so part of the challenge for independence is, in the time of just big commodity cost inflation, how do you battle that. That's not saying it's easy for the large chains — it's hard on everybody just about.”

Over the past two years, he added, the industry has seen the largest shift toward big restaurant brands who are taking increased shares of what is a larger pie.

Census data for April calculated U.S. food services and drinking places posted $83.741 billion in sales, as compared to the April 2022 figure for U.S. grocery stores of $68.906 billion.

Kalinowski said it was intriguing that combined foodservice and drinking place sales with grocery sales had increased significantly from pre-pandemic levels.

“There seems to be meaningfully more spending on food/beverages than there was pre-pandemic,” he said. “The April 2022 combined number of $152.6 billion is 26.4% larger than the April 2019 combined number of $120.7 billion.”

This past April marked the 12th consecutive month for which that number was up more than 10% over the corresponding pre-pandemic monthly number, Kalinowski noted.

“We continue to look for restaurants’ market share in full-year 2022 to be at least one full percentage point higher than the full-year 2021 figure of [positive] 52.7%,” he said.

“All in all, this is good news for restaurant stocks — which tend to be comprised of the very largest restaurant concepts in most cases,” Kalinowski said in his note. “Large concepts have fared better than smaller chains and independents during the pandemic, creating the largest opportunity in decades for market-share gains within the restaurant industry favoring large chains.”

Tyler Durden Thu, 05/26/2022 - 13:40

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‘Insiders’ Are Buying This Dip

‘Insiders’ Are Buying This Dip

The Nasdaq is in the middle of its worst drawdown since the Lehman crisis and the Dow just suffered its longest…

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'Insiders' Are Buying This Dip

The Nasdaq is in the middle of its worst drawdown since the Lehman crisis and the Dow just suffered its longest losing streak in 99 years.

As that is happening, faith in The Fed is crumbling as Powell faces the central bankers' nemesis of stagflation... and all in an election year (threatening the confidence in The Fed's independence should it falter from its path of uber-hawkishness).

According to the latest BofA Fund Manager Survey, the grim 'market' has sent investors reeling with those equity funds tracked by EPFR Global suffering six straight weeks of outflows (the longest stretch of withdrawals since 2019), and cash levels among investors soaring to their highest level since September 2001.

Additionally, the BofA survey also showed that technology stocks are in the 'biggest short' since 2006.

The 'proverbial' dip-buyer appears to have abandoned hope as the strike on any Fed Put (at which Powell will fold like a cheap lawn chair over the pain) gets marked lower and lower.

But...

There is one group apparently, that is willing to dip a toe in the capital market deadpool - corporate insiders.

As Bloomberg reports, according to data compiled by the Washington Service, more than 1,100 corporate executives and officers have snapped up shares of their own firms in May, poised to exceed the number of sellers for the first month since March 2020 marked the pandemic trough two years ago.

The ratio has surged to 1.04 this month from 0.43 in April.

Notably, the insider buy-sell ratio also jumped in August 2015 and late 2018, with the former preceding a market bottom and the latter coinciding with one.

“It is a function of investors functioning at the '30,000 foot level' or 'macro' whereas insiders are functioning at the 'boots on the ground', company-fundamentals level,” said Craig Callahan, chief executive officer at Icon Advisers Inc. and author of 'Unloved Bull Markets'.

“We believe the company-fundamentals view is usually correct.”

Nicholas Colas, co-founder of DataTrek Research, is not as confident:

“All we know for sure is that the valuation of any stock or the entire market hinges on whether investor confidence in future cash flows is rising or falling. At present, confidence is falling,” he wrote in a recent note.

“This is not because stocks expect a recession. Rather, it is because the range of possible S&P 500 earnings power runs in a wide channel and can become wider still.”

Starbucks' Interim Chief Executive Officer Howard Schultz and Intel CEO Patrick Gelsinger are among corporate insiders who scooped up their own stock amid the latest market rout that took the S&P 500 to the brink of a bear market.

With their share prices plunging, we can't help but wonder if this 'buying' is mere virtue-signaling so that the board won't fire them for their absymal loss of market cap? 

Tyler Durden Thu, 05/26/2022 - 13:20

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