“The e-commerce industry is a force that no investor can afford to ignore”
— Cushla Sherlock,Credit-Suisse
We couldn’t agree more — e-Commerce is one of the fastest-growing industries in the world.
Per market research firm eMarketer, globally consumers will spend $1.672 trillion online this year. By 2019, online purchases are projected to more than double to $3.551 trillion, which will include roughly 12.4% of overall retail sales worth $28.550 trillion.
Coming to the U.S, according to Fitch Ratings’ 2016 U.S. retail outlook, e-Commerce will account for 15% of total retail sales and 50% growth in total retail spending in 2016.
Looking Beyond Amazon
In the e-Commerce space, the most-loved stock is still Amazon.com Inc. (AMZN), and for good reason. The company has witnessed a surge in value of 111.19% year-to-date.
Amazon was one of the first companies to start selling things online. So it has enjoyed a first-mover advantage and also seen tremendous growth such that we cannot think about ecommerce without this company. Slice Intelligence said that Amazon accounted for 35.7% of all Black Friday Sales, with Best Buy (BBY) second at just 8.2% and Macy’s (M) third at 3.4%
Amid all the media attention that Amazon is getting, here are 4 e-Commerce stocks that are a good buy right now.
Our Picks
eBay Inc. (EBAY – Analyst Report) carries a Zacks Rank #2 (Buy) and is one of the largest online retailers in the world. In the third quarter, reported recently, the company beat the Zacks Consensus Estimate by 2 cents as the active buyer base rose 5% year over year to 159 million. Gross merchandise volume (GMV) went up 6%. Free cash flow was a solid $462 million.
It raised the full-year EPS to $1.80–$1.82 from $1.72–$1.77.
