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Week Ahead: Nine Major Rate Decisions with developed markets moving slow

A huge week of central bank rate decisions will tell a diverging story over how developed markets can afford to hold off on rate hiking cycles while emerging markets continue to tighten monetary policy.  The main event on Wall Street will be the FOMC…

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A huge week of central bank rate decisions will tell a diverging story over how developed markets can afford to hold off on rate hiking cycles while emerging markets continue to tighten monetary policy.  The main event on Wall Street will be the FOMC policy decision that was made easier after the latest inflation report that showed consumer prices rose to the fastest annual pace in nearly 40 years.  The Fed’s hawkish shift is completely justified and a faster pace of tapering its asset purchases is not only warranted its long overdue.

Nine major central bank decisions will show policymakers are changing course with monetary policy.  The ECB may exit its pandemic emergency program while boosting its regular asset purchase program.  The BOE will need to raise rates soon but they may hold off until the New Year.

FOMC to deliver a faster taper

ECB debates stimulus exit

BOE to hold off on raising rates

Country


US

Now that the latest inflation report showed inflation remains stubbornly high, the focus shifts completely on the FOMC policy decision. The Fed is expected to recognize inflation has been persistent and announce a faster taper. The hawkish shift will be complete after policymakers bump up their median projection for the central bank’s short-term target rate. Expectations are growing that the Fed will double the pace of its bond purchase taper, but if they only deliver a modest increase, the Fed’s credibility will take a hit. 

On Tuesday, the Empire Manufacturing report is expected to show activity cooled in December, while prices paid to US producers could soften from elevated levels.  Wednesday is a busy day with retail sales expected to show inflation is impacting consumer spending, followed by Fed tapering fireworks in the afternoon. Thursday is all about housing data that should show housing starts and building permits continue to rise. The last trading day of the week will give an early glimpse on December manufacturing and service PMI data.   

EU 

The first half of next week is looking a little quiet but the last couple of days is action-packed, with the ECB monetary policy meeting undoubtedly the headline event. Central banks are really under the spotlight at the moment as inflation rises well above target and shows no sign of abating. The ECB is among those that has legitimate reason to believe it will return below target over the medium term and with the PEPP program expiring in March, there is a question of what will replace it, if anything. This question could be answered next week.

PMI and inflation data will also be released on Thursday and Friday which should make for a blockbuster week ahead of the holiday season.

UK

A big week for the UK as we get a raft of economic data including the jobs report, inflation, PMIs and retail sales. But it’s the BoE decision on Thursday that will draw the most attention, with the MPC now expected to hold off on raising rates due to the uncertainty around Omicron. It’s not certain that this will happen, with markets still pricing in around a decent chance of a 15 basis point increase but it’s no longer the most likely outcome. 

Russia

The CBR is expected to increase interest rates by 100 basis points on Friday as it continues to push back against rising inflationary pressures. It rose to 8.4% last month, well above its 4% target. 

It last raised rates by 75 basis points in October when it said further hikes could be warranted at upcoming meetings if the situation develops in line with baseline forecasts, which had inflation between 7.4% and 7.9% at the end of 2021. 

South Africa

The country is continuing to deal with the Omicron outbreak that’s seeing cases surge rapidly, perhaps even 4.2 times faster than delta. With hospitals not yet overwhelmed and symptoms reportedly milder than delta, the government may resist implementing harsh restrictions too soon. Of course, the situation is developing rapidly and as more data is collected, that could change fast.

CPI inflation is the only data release next week.

Turkey

The CBRT meets next week and as always, anything can happen. The central bank has cut interest rates by 400 basis points since September and signaled it could again in December, before assessing its position. This is despite inflation continuing to rise and hitting 21.31% in November.

The central bank is clearly under pressure from President Erdogan – a strong opponent of high interest rates and staunch believer that higher rates stoke inflation – and he has repeatedly defended the CBRTs moves in recent weeks. 

Interventions in the currency markets haven’t been particularly beneficial and more unconventional policies like this will be needed if the central bank continues on this dangerous path. 

China

Fitch has placed Evergrande and Kaisa in selective default. Restructuring headlines over the weekend will dominate early Monday sentiment. China has responded by cutting the RRR last week and this week, has hiked the foreign reserve requirements of China Banks and has fixed the Yuan sharply lower versus the US Dollar. In totality it suggests that China is nervous about the fallout on the economy of the failure of indebted property developments and has finished with the trend of Yuan strength. Whether the US agrees or not is open to debate.

China releases heavyweight data in the coming week. Wednesday has Industrial Production, Retail Sales, UNemployment and Fixed Asset Investment. Coming before the FOMC decision, the data, if weaker, will weigh heavily on China equities and possibly the Yuan. Not quite the outcomes the government and PBOC want to achieve.

Otherwise, keep an eye on the news ticker for Evergrande developments and further technology company restrictions re overseas listings.

India

The Reserve Bank of India held policy rates and outlook unchanged this week, remaining in dovish mode to support the post-delta recovery at the expense of surging inflation. Local equites and the INR have held steady as the US Dollar weakened.

India releases trade data this week but equities and the currency will be completely at the mercy of the FOMC outcome on Thursday Asian time. Both have been buoyed in recent months by hot money flowing from CHina into the red hot India IPO and tech sector. A hawkish FOMC could see a rapid reverse of both. 

Australia 

The Australian Dollar continues to bounce around on the daily changes in investor sentiment driven by omicron headlines. Overall, it remains near to its 2021 lows and in the background, nerves are rising over US inflation data and the FOMC meeting. Negative headlines from China over the weekend, or omicron, will put the AUD back under pressure next week. Equities continue to slavishly follow New York markets for direction.

RBA Gov Lowe and Lowe speak midweek, but are unlikely to give policy insight. NAB Biz Confidence, Westpac Cons. Sent. PMIs and Employment fill out a busy data week. Mostly it should show a rapid bounce from the lockdowns of Q3 and is bullish for equities and currency on the periphery. Employment will generate the most intra-day volatility.

New Zealand

The NZD/USD remains near to 2021 lows, underperforming the AUD/USD as negative global investor sentiment pushes both lower, and the cautious RBNZ policy decision continues to haunt the currency. 

Watch for New Zealand’s Covid case load as the country almost fully reopens this week. Surging cases will weigh on currency and local stock markets. 

New Zealand releases Service PSI, Biz Conf. Consumer Sent. the Current Account and GDP in a busy week. The GDP number presents the greatest volatility point.

Japan

Japan’s Tankan Large Manufacturing Survey on Monday, Trade Balance Thursday, and BOJ Policy Decision Friday, booked the week. The Tankan will generate a negative response in local equities if it is weak, throwing the recovery picture a slower gear. Volatility will be strictly intraday.

The BOJ will remain on hold with no changes, as it has for the last 20 years. The FOMC will have a greater impact with a hawkish tilt almost certainly sending USD/JPY much higher on yield differentials. Japan equities, ex intraday noise, will continue to slavishly track US equities and the Nasdaq in particular.

Markets

Energy

WTI crude seems to be following US stocks more so than stockpile data. This is ending up being a rather good week for crude prices as the crude demand outlook hit from Omicron might be limited.  OPEC+ continues to have a firm handle on the direction of prices and can disrupt any selloffs with a quick reverse of their output increase. 

Once Europe gets beyond this wave of restrictive movements and the north stops seeing milder weather, the rally in oil prices could easily make a run towards the highs seen last month.  

Gold

Gold is slowly getting its mojo back after a hot inflation report mostly matched estimates.  A lot of the inflation is stickier than anyone wants and that should keep gold’s medium- and- long-term outlooks bullish. Gold just needs to survive a firm consensus on how many rate hikes the Fed will start off with next year.  An accelerated rate hiking cycle is a big risk and could trigger panic selling that could prove troublesome for gold in the short-term, but that still seems unlikely to happen. 

Gold’s recent trading range of $1760 and $1800 might continue to hold up leading into next week’s FOMC decision.   

Bitcoin

Before the US inflation report, many traders were noticing that Ethereum dominance is settling in. This has been a tough week for cryptos and Ethereum mostly outperformed. The global crypto market cap is around $2.2 trillion and while Bitcoin is still king with 39% dominance, Ethereum has now earned 20%. There is still a lot of motivation for more crypto products to be created and the growth outlook next year should limit whatever selling pressure enters.

Bitcoin prices initially after US inflation hit a 39-year high, but the rally stalled after reaching the $50,000 level. Given what happened last weekend, some leveraged traders are thinking twice about holding positions into this weekend. Some traders are anticipating a sideways market until the FOMC policy decision on Wednesday, so hesitancy to hold over the weekend might grow. Hodlers will likely remain unfazed and feel mostly confident as need for inflation hedges will grow given the widespread rising pricing trends.  

Key Economic Events

Saturday, Dec. 11

  • Day two of the G-7 foreign ministers meeting in Liverpool

Sunday, Dec. 12

  • Saudi Arabia to release budget
  • South Korean President Moon Jae-in starts a four-day trip to Australia.
  • Austria’s nationwide coronavirus lockdown winds down

Monday, Dec. 13

  • V4-France Summit in Budapest. Macron will hold a bilateral meeting with Hungary PM Orban.
  • South Korean President Moon Jae-in and Australian PM Morrison hold a joint news conference in Canberra.
  • US Secretary of State Blinken travels to Indonesia and will also visit Malaysia and Thailand  

Economic Data/Events:

  • New Zealand REINZ house sales, net migration, performance services index
  • India CPI
  • Japan machinery orders
  • Hong Kong industrial production, PPI
  • China medium-term lending
  • Turkey industrial production, current account

Tuesday, Dec. 14

  • Canadian Finance Minister Chrystia Freeland presents a budget update.
  • FOMC begins its two-day policy meeting.

Economic Data/Events:

  • US PPI
  • Eurozone industrial production
  • Australia consumer confidence
  • India wholesale prices
  • New Zealand food prices
  • Japan industrial production, capacity utilization
  • Mexico international reserves
  • UK jobless claims, unemployment

Wednesday, Dec. 15

Economic Data/Events:

  • FOMC Decision: Fed to accelerate tapering of asset purchases
  • US cross-border investment, business inventories, retail sales, empire manufacturing,
  • China industrial production, retail sales, property prices, fixed assets, surveyed jobless
  • UK CPI
  • Canada CPI
  • Poland CPI
  • South Africa CPI
  • Russia GDP
  • India Trade
  • Australia unemployment, Westpac consumer confidence
  • New Zealand BoP, current account GDP ratio
  • South Korea jobless rate, money supply
  • Japan tertiary index
  • Canada housing starts, existing home sales
  • EIA Crude Oil Inventory Data

Thursday, Dec. 16

  • EU Leader Summit starts in Brussels

Economic Data/Events:

  • US housing starts, initial jobless claims, industrial production
  • ECB Rate Decision: Rates to stay unchanged; To expand Asset Purchase Program
  • Mexico Rate Decision: Expected to raise Overnight Rate 25 bps to 5.25%
  • Norway Rate Decision: Expected to raise deposit rates 25 bps to 0.50%
  • Switzerland Rate Decision: no change expected to monetary policy
  • Turkey Rate Decision: Expected to cut one-week deposit rate by 100 bps to 14.00%
  • BOE Rate Decision: no change expected to monetary policy
  • Eurozone manufacturing PMI 
  • Germany manufacturing PMI 
  • UK manufacturing PMI 
  • Australia manufacturing PMI, consumer inflation expectations, jobless
  • New Zealand GDP
  • Japan Trade, Bank PMI
  • Singapore Trade
  • Hong Kong jobless rate

Friday, Dec. 17

Economic Data/Events:

  • BOJ Rate decision: expected to maintain its current monetary policy, while extending the duration of a trimmed Covid aid program  
  • Russia Rate decision: Expected to raise key rate 100 bps to 8.50%
  • Quadruple Witching Day and major US Indices quarterly rebalance effective after markets close
  • Eurozone CPI, new car registrations
  • Germany IFO business climate
  • Spain trade
  • Singapore electronic exports
  • Japan department store sales
  • Thailand foreign reserves, forward contracts
  • New Zealand ANZ consumer confidence

Sovereign Rating Updates:

– Lithuania (Fitch)

– Luxembourg (Moody’s)

– Slovakia (Moody’s)

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Stocks

Global financial regulators will discuss crypto at G7: Report

Bank of France Governor François Villeroy de Galhau reportedly said that the recent crypto market volatility had been a “wake-up call” for global…

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Bank of France Governor François Villeroy de Galhau reportedly said that the recent crypto market volatility had been a “wake-up call” for global regulators.

Central bank governors and finance ministers from the Group of Seven, or G7, are reportedly planning to discuss the regulation of cryptocurrencies.

According to a Tuesday report from Reuters, Bank of France Governor François Villeroy de Galhau said representatives from the United States, Canada, Japan, Germany, France, Italy, and the United Kingdom will likely speak on issues related to a regulatory framework for cryptocurrencies at a meeting in Germany's cities of Bonn and Königswinter starting on Wednesday. Villeroy reportedly said that the recent crypto market volatility — likely referring to some stablecoins depegging from the U.S. dollar and prices of major tokens dropping — had been a “wake-up call” for global regulators.

“Europe paved the way with MiCA,” said Villeroy at an emerging markets conference in Paris, referring to the European parliament’s legislation aimed at forming a regulatory framework on crypto. “We will probably [...] discuss these issues among many others at the G7 meeting in Germany this week.”

The Bank of France governor added in a speech to the Emerging Market Forum in Paris on Tuesday:

“Crypto assets could disrupt the International Financial System if they are not regulated, overseen and interoperable in a consistent and appropriate manner across jurisdictions.”

According to the G7 website, finance ministers and central bank governors will meet in Germany from May 18-20 to discuss policies related to member nations’ recovery and financial stability due to the COVID-19 pandemic, “shaping the upcoming transformation processes in the context of digitalisation and climate neutrality,” and business policy at the International Monetary Fund. The group issued guidelines around the possible rollout of central bank digital currencies in 2021, and reportedly warned that certain stablecoins could threaten the global financial system in 2019.

Related: Bank of Japan official calls for G7 nations to adopt common crypto regulations

Villeroy has previously urged EU officials to develop a regulatory framework given crypto’s growing role in regional markets, saying they only had “one or two years" to act. Prior to his election victory in France, Emmanuel Macron said he supported the European parliament's recent efforts to regulate crypto — including MiCA — adding that any rules should not hinder innovation.

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Bonds

Best Stocks to Buy in a Bear Market: Your Complete Guide

To protect your portfolio this year, keep reading to find the best stocks to buy in a bear market and how they can still earn you a profit.
The post Best…

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Stocks fell again last week, making it six straight weeks of fallout. Everything is slipping from its highs between stocks, bonds and the latest victim, crypto. With this in mind, if you wish to find the best stocks to buy in a bear market, there are several factors to consider first.

For one thing, the Federal Reserve is committing to using all the tools necessary to bring down the price of goods. Although the pace of inflation is slowing, prices are still on the rise.

The latest Consumer Price Index (CPI) reading shows prices rose another 0.3% in April. Furthermore, as the fed works to get inflation under control, Chairman Jerome Powell is warning there could be more pain ahead.

Several analysts are cutting their economic predictions as a result. For example, Former Goldman Sachs CEO Lloyd Blankfein suggests a recession may be in the works. On CBS’s “Face the Nation,” he mentions “there’s a path” to a recession, and taming inflation will be tricky. If you wish to protect your portfolio this year, keep reading to find the best stocks to buy in a bear market and how they can still earn you a profit.

What Are the Best Stocks to Buy in a Bear Market?

The first thing to consider is not all bear markets are the same. They can appear out of nowhere, often caused by a black swan event such as the pandemic.

At the same time, bear markets are a natural part of investing. In a way, they can help correct valuations, allowing investors to build long-term wealth. For example, the S&P 500 (SPX) P/E ratio is around 20, down from 38 in December. Yet the value is still higher compared to its historical average of 15.

However, they can also be detrimental if you are not prepared. There are a few things to look for to find good stocks to invest in during a recession, such as…

  • Dividends
  • Sales Growth
  • Free Cash Flow

On top of this, how the stock performs relative to its peer can help you identify leaders. If a stock is trading above its 200D SMA while its peers are slipping, it’s generally a sign of strength and momentum. To get your portfolio ready for what’s next, check out the best stocks to buy in a bear market.

No. 4 Consumer Defensive

When inflation is high, it makes goods more expensive, reducing consumers’ purchasing power. Although this is true, people still need their essentials. With this in mind, the consumer defensive sector consists of companies that make essential goods such as household essentials, tobacco and food.

Kroger (NYSE: KR)

Kroger is one of the largest food retailers in the U.S., with close to $138 billion in sales in 2021. Despite growing inflation and wage pressure, the grocer continues growing at an impressive rate. Lastly, with many locations having pharmacies and fuel centers, Kroger’s margins shouldn’t see too much pressure as food and wage prices continue climbing.

Boston Beer Co. (NYSE: SAM)

Sticking with the theme of industry leaders, Boston Beer is a top brewing company in the U.S. with brands such as Sam Adams, Twisted Tea and Truly. Although the brewer saw sales decline in the first quarter, its positioning itself for future growth with younger-generation favorites such as Truly hard Selzer.

Companies in the consumer defensive sector are some of the best stocks to buy in a bear market. However, as employees seek higher wages to offset inflation, we could see some short-term pressure. With this in mind, both companies are fundamentally solid while positioned for future growth.

No. 3 Healthcare Stocks

Healthcare is an investor’s favorite industry when the economy is slowing. For one thing, healthcare is an industry with stable demand. To explain, consumers have healthcare plans, and people will still get sick. Not to mention patients still need to take their medication.

One of the last things people will cut out of their budget is healthcare. As a result, the industry sees relatively stable earnings. That said, the Health Care Select Sector SPDR Fund (NYSE: XLV) is down 6% YTD compared to the SPDR S&P 500 ETF (NYSE: SPY), down 15%.

CVS Health (NYSE: CVS)

During the pandemic, CVS transformed its business to meet the changing industry needs. By providing affordable, convenient, and personal care, CVS is seeing the results pay off. In Q1, health care benefits, pharmacy sales, retail, and store visits rose significantly as a result. Even more, the company is raising guidance for 2022.

Mckesson (NYSE: MCK)

As the largest pharmaceutical distributor in the U.S., Mckesson plays a critical role in healthcare. Although exiting international markets may slow growth in the short term, an aging U.S. population and more access to healthcare should promote higher sales.

Both CVS and Mckesson have strong free cash flow, pay dividends, and are trading above their 200D SMA.

No. 2 Materials and Miners

Materials and mining companies are some of the best stocks to buy in a bear market with tangible value. Mining companies extract resources such as metals, selling them to be made into goods. Other materials firms can include chemicals, packaging and agricultural goods.

Mosaic (NYSE: MOS)

One of the largest fertilizer nutrient producers looking to fill the supply gap left by the war in Ukraine. Furthermore, a tight agriculture market is driving prices higher, resulting in over 300% operating earnings growth. Lastly, crop prices are likely to remain elevated this year with growing sanctions and lack of supply.

Alcoa Corp. (NYSE: AA)

The world’s largest bauxite miner plays a vital role in the aluminum market. Bauxite is used to produce alumina, then used to make aluminum. With demand for aluminum expected to remain elevated (especially as automakers pick up again), Alcoa rewards shareholders with a new dividend and increased buyback program.

Another key thing to consider is the Infrastructure Investment and Jobs Act intended to rebuild and replace America’s roads, bridges, etc. Many of these projects will require significant resources such as steel, iron, and other construction materials. With this in mind, the bill states these materials must be domestic.

No. 1 Best Stock to Buy in a Bear Market: Energy Stocks

This year, energy stocks are outperforming the market, and it’s not even close. The Select SPDR Trust Energy ETF (NYSE: XLE) is up 48% so far in 2022. Yet the sector doesn’t look to be slowing anytime soon.

Devon Energy (NYSE: DVN)

The number one performing stock in the S&P 500 last year looks to continue its reign. With oil prices over $114 a barrel, Devon Energy is seeing profits soar as operating cash flow rose another 14% in Q1 to $1.8 billion. With this in mind, the company is returning profits to investors through a record $1.27 dividend (nearly 8% yield) and a massive $2 billion share buyback.

Chevron (NYSE: CVX)

The second-largest oil company in the U.S. (behind Exxon) is ramping spending to boost production. After several smart partnerships and acquisitions, Chevron is investing in growth. So far, the strategy is paying off as the company becomes more efficient and profitable. Lastly, Chevron’s focus on a lower carbon future with renewable energy investments will likely prove to be a smart bet in the long run.

As many nations look to phase out Russian oil, other companies are stepping up to increase production and fill the supply gap. The economy is largely dependent on oil and gas to continue running smoothly. People will still need gas and oil to power their homes, get to and from work, etc.

Given these points, energy stocks are on the top of my list of best stocks to buy in a bear market. Even though energy is outperforming this year, they have more room to run. To explain, energy makes up only about 4.5% of the S&P 500, even after running up this year. However, it’s still relatively low compared to its historical average of around 10%.

The post Best Stocks to Buy in a Bear Market: Your Complete Guide appeared first on Investment U.

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Economics

4 E-Commerce Stocks To Watch In May 2022

Could these e-commerce stocks be attractive buys at their current price points?
The post 4 E-Commerce Stocks To Watch In May 2022 appeared first on Stock…

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Are These The Best E-Commerce Stocks To Invest In Today?

E-commerce stocks could be worth looking at in the stock market this week. By and large, this would be due to the prominent focus on the broader retail industry now. Notably, the U.S. Commerce Department just released its latest monthly consumer spending figures earlier today. To highlight, April’s retail sales are up by 0.9% overall as general demand and inflation drove spending. For reference, Dow Jones economist consensus was expecting a 1% increase. Despite the seemingly less-than-ideal spending environment, consumers continue to hold strong with sales rising for the fourth month back-to-back.

Not to mention, several top e-commerce stocks taking center stage on the earnings front this week. For starters, the likes of JD.com (NASDAQ: JD) and Walmart (NYSE: WMT) provided their latest quarterly financial updates earlier today. Across the board, both firms beat consensus revenue projections from Wall Street. At the same time, Pinduoduo (NASDAQ: PDD) is also gaining traction now thanks to a recent upgrade from JPMorgan (NYSE: JPM). As of earlier today, the firm now has a $55 price target and an Overweight rating on PDD stock. On the whole, e-commerce stocks appear to be drawing attention in the stock market today. Could one of these firms be your next big investment?

E-Commerce Stocks To Buy [Or Sell] This Week

Home Depot Inc.

best retail stocks (HD stock)

Starting us off today, we have Home Depot, one of the largest home improvement retailers in the world. With over 2,300 stores across North America, the company supplies tools, construction products, appliances, and services. It also has over 70 distribution centers in the U.S. alone. The company also boasts an impressive e-commerce business that offers more than one million products for both DIY customers and professional contractors. Today, the company reported its first-quarter financials.

Firstly, it reported sales of $38.9 billion for the quarter, an increase of 3.8% year-over-year. This would be the highest quarter for sales in the company’s history.  Secondly, net earnings for the quarter were $4.2 billion or $4.09 per diluted share. Home Depot says that after comparing against last year’s historic growth and despite facing a slower start to the year, it has managed to pull off another solid quarter. Topping things off, the company is also raising its fiscal 2022 guidance and now expects an operating margin of approximately 15.4% and diluted earnings per share growth to be in the mid-single digits. All things considered, is HD stock worth investing in right now?

[Read More] Stock Market Today: Dow Jones, S&P 500 Rebound; Take-Two Surges On Solid Earnings

Sea Limited

top tech stocks (SE Stock)

Sea Limited is a leading e-commerce company with headquarters in Singapore. The company has three core businesses spanning the e-commerce, digital entertainment, and digital payments markets. Shopee, its e-commerce platform is the largest in Southeast Asia and Taiwan. Also, Shopee was the top e-commerce brand in YouGov’s “Best Global Brands 2021” and ranked sixth overall. SE stock is up by over 12% on today’s opening bell. The company also reported its first-quarter financials.

Diving in, the company posted a total GAAP revenue of $2.9 billion, an increase of 64.4% year-over-year. Total gross profit was $1.2 billion, up by 81.3% year-over-year. This was driven by gross orders that totaled 1.9 billion, increasing by over 70% year-over-year. Gross Merchandise Value was $17.4 billion for the quarter, an increase of 38.7% year-over-year. In Southeast Asia and Taiwan respectively, Shopee continues to rank first in the Shopping category by average monthly active users and total time spent in-app for the first quarter of 2022. With that in mind, is SE stock worth adding to your portfolio right now?

Chewy Inc.

best ecommerce stocks to buy (CHWY stock)

Next, we have Chewy, an online e-commerce company that runs a pet food retailing business. It strives to be one of the most trusted and convenient destinations for both pet parents and partners everywhere. In essence, it offers a personalized service of a neighborhood pet store alongside the convenience and speed of e-commerce. The company offers a wide selection of over 100,000 products that include food and medication for pets.

In late March, the company posted its fourth quarter and fiscal 2021 financials. Net sales for the quarter was $2.39 billion, an increase of over 17% year-over-year. “Our ability to deliver 24 percent net sales growth in 2021, on top of the outsized growth we delivered last year, reflects the durability of our business and the Pet category beyond the near-term benefits of the pandemic, and is a strong testament to Chewy’s ability to execute in the face of rapidly evolving macro conditions,” said Sumit Singh, Chief Executive Officer of Chewy. Also, Singh notes that Chewy’s net sales per active customer hit a record high of $430 during the quarter. This would go to show the persisting loyalty consumers have towards the company’s offerings. With all this in mind, would CHWY stock be a top buy in your books?

[Read More] Top Stock Market News For Today May 17, 2022 

Etsy Inc.

best e-commerce stocks (ETSY stock)

Finishing this list today, we have Etsy, an e-commerce company that focuses on handmade and vintage items. These would include jewelry, bags, furniture, and art & crafts. Items that are at least 20 years old are only considered to be vintage by the company. Also, its marketplace platform connects millions of buyers and sellers from around the globe. For sellers, Etsy also offers a range of tools and services that can address their key business needs.

On May 4, 2022, the company reported its first-quarter financials as well. Its highlights include a consolidated gross merchandise sales (GMS) of $3.3 billion, increasing by 3.5% year-over-year. Consolidated revenue for the quarter was $579.3 million, an increase of 5.2% year-over-year. Furthermore, net income for the quarter was $86.1 million. Etsy says that despite continued uncertainty and macroeconomic headwinds, it continues to deliver solid results that show that it is maintaining most of its gains. With that piece of information, is ETSY stock worth buying today?

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