Comparing 6 E-commerce Stocks Reporting Earnings this Week

Internet – Commerce: A Leading Industry Group

Though the U.S. stock market is entering a holiday-shortened week, investors are awaiting a spat of earnings from one of the strongest groups in the market – the Internet–Commerce group. Because the Internet–Commerce industry is ranked in the top 21% (ranked #52 out of 251) of industries tracked by Zacks, we expect it to outperform the major indices over the next 3 to 6 months.


Image Source: Zacks Investment Research

While the internet commerce industry was battered in 2022, it has outperformed the broader market from both a technical and fundamental perspective recently. That said, the industry is diverse and wide-ranging. For example, there is a plethora of domestic and international players, penny stocks and pricy stocks, and profitable and unprofitable companies.

Leaders vs. Laggards

Since the many businesses and stocks vary so much, we will use today’s article to differentiate the leaders from the laggards and cover some key stocks in the group reporting earnings this week.

Leader

Zacks Rank #1 (Strong Buy) stock MercadoLibre Inc MELI is often dubbed the “Amazon of South America” and is the largest e-commerce platform in Latin America. The fast-growing company is based in Argentina but derives the largest portion of its revenue from the Brazilian market. While Amazon AMZN has a footprint in Latin America, MercadoLibre outpaces the e-commerce giant in the area and is the dominant player. Since becoming a public company in 2007, shares have been up more than 4,000%. Over the past ten years, the stock is up some 1,220.60% versus just 229.60% for the S&P 500 Index.

Zacks Investment Research
Image Source: Zacks Investment Research

Fundamental View: Looking back at MercadoLibre’s fundamental history, it is easy to understand why the stock has been such a serial outperformer. Over the past two quarters, EPS grew

Read More

3 E-Commerce Stocks That Could Help Set You Up for Life

The e-commerce sector obtained hit difficult final calendar year thanks to hard comparisons with the growth before in the pandemic and macroeconomic headwinds.

Nevertheless, the on the net retail channel should nonetheless have a shiny future in front of it as it carries on to achieve current market share from the regular brick-and-mortar channel in classes like groceries, household furnishings, and car sections, as properly as far more classic types like electronics and attire.

If you happen to be hunting to capitalize on the prolonged-phrase prospect in e-commerce, listed here are a few shares really worth purchasing now.

Impression supply: Getty Pictures.

1. Shopify

Shopify (Store .26%) has occur to dominate the e-commerce software house, serving online sellers from smaller companies to Fortune 500 organizations. 

For several years, the firm was a sector darling, placing up large expansion in earnings as the stock marched bigger. However, shares collapsed very last yr as product sales growth slowed and valuations compressed throughout the tech sector. 

Even so, that pullback sets up a getting possibility, as the stock is nonetheless developing and really should advantage from the ongoing enlargement of e-commerce and new online retail corporations.

Shopify has not documented fourth-quarter earnings nonetheless. But the firm claimed that forex-neutral gross products volume jumped 21% around the 2022 Black Friday weekend, and it just announced its 1st price tag hike in 12 yrs throughout most of its membership tiers, showing self esteem in its pricing electrical power.

In addition to offering its earnings margins a increase, the rate hikes will also give it extra money to reinvest in the enterprise for projects, like its current acquisition of Deliverr, to enhance its fulfillment community and fend off competitiveness from Amazon.

With a current market cap of $61 billion, there is certainly continue to

Read More

Tips for Investing in Small-Cap Stocks

In this podcast, Bill Mann, director of small-cap research at The Motley Fool, joins Motley Fool producer Ricky Mulvey to discuss:

  • How to think about allocation for smaller companies.
  • Key small-cap metrics to watch.
  • Boring businesses that warrant more attention.
  • A closer look at a real estate brokerage, a coffee supplier, and a Bitcoin holding firm that masquerades as a software company.

To catch full episodes of all The Motley Fool’s free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.

10 stocks we like better than Westrock Coffee Company, LLC
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now… and Westrock Coffee Company, LLC wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

See the 10 stocks

 

*Stock Advisor returns as of January 9, 2023

 

  

This video was recorded on Jan. 14, 2023.

Bill Mann: I think that what you really want to do is focus on companies that seem to be doing want-tos, as opposed to has-tos. You will see companies out there that are smaller companies that are going out and they are investing, they’re investing in new factories, they’re investing in new initiatives. They are actually showing you that they have some financial strength.

Chris Hill: I’m Chris Hill and that’s Motley Fool Senior Analyst Bill Mann. He’s also the head of Small Cap Research here at The Motley Fool. Ricky Mulvey caught up with Bill to talk about how to

Read More

2 E-Commerce Stocks You Can Buy and Hold for the Next Decade

E-commerce took a breather in 2022 as complicated comparisons with 2021 and macro headwinds cooled off development across most of the sector.

On the other hand, that doesn’t signify the large-advancement times in the sector are absent for superior. Technological innovations like augmented truth really should help spur adoption in parts like property furnishings, and delivery speeds will keep on to boost as properly. In the meantime, other exterior tendencies like distant do the job really should also assist the development of e-commerce.

According to the Census Bureau, which tracks retail gross sales, e-commerce tends to make up considerably less than 15% of retail income in the U.S., even right after decades of double-digit development. This exhibits there is certainly continue to a huge option, and e-commerce is an even smaller share of retail gross sales in international marketplaces.

If you’re looking for e-commerce stocks to buy and maintain for the extensive phrase, preserve examining to see two good candidates.

1. Shopify: The e-commerce husband or wife models need

Amazon has dominated the e-commerce sector considering that its early times and owns roughly 40% of U.S. current market share many thanks to its initial-celebration small business and third-party market. 

However, you can find a large hole in Amazon’s companies and that’s in which Shopify (Shop .25%) comes in. If you’re a small or medium-sized business and you want to offer on your have web site, Amazon won’t be able to enable you. Shopify has ever more turn out to be the de facto remedy for these on line vendors. It is really even attracted Fortune 500 organizations that want to promptly deploy an e-commerce website.

Shopify offers a suite of software program expert services for enterprises, together with web style, analytics, marketing and advertising, logistics, and payments, and its

Read More

2 E-Commerce Stocks I’d Buy Right Now (and 1 I’d Cautiously Consider)

Image resource: Getty Illustrations or photos

E-commerce stocks are out of favour in 2022. Pretty a lot every single major company in the field is down major this yr, and it is not challenging to see why. In 2020, COVID-19 lockdowns compelled retail stores to shut down, main to a surge in gross sales at e-commerce organizations. In 2022, the lockdowns quite a lot ended, with the final result staying that e-commerce corporations confronted extra opposition from merchants. Predictably, their profits advancement slowed down.

So, 2022 was a undesirable 12 months for e-commerce. Which is just a truth. But it’s also a rationale why e-commerce may perhaps be established for superior fortunes in the future. Organizations go by means of their ups and downs — generally, buying them at their low details outcomes in excellent returns. It is not likely that a rising field like e-commerce is heading to collapse the dilemma this 12 months was mere deceleration (i.e., a progress slowdown) these companies did not really shrink. So, a lot of of them could be compelling purchases at today’s prices.

In this article I will seem at two e-commerce corporations I’d buy in 2022 — and one I’d cautiously take into account.

Purchase: Alibaba

Alibaba (NYSE:BABA) is a person e-commerce inventory I would purchase and have, in truth, bought. It’s a Chinese e-commerce firm that bought overwhelmed down in 2021 due to China’s regulatory crackdown and all over again in 2022 for the reason that of China’s COVID outbreaks. From the all-time high established in 2020, BABA inventory has fallen about 70%.

It’s been a difficult selloff, but it generates a main possibility today. At $86.50, Alibaba stock is incredibly inexpensive, investing at

  • 11.5 instances altered earnings
  • 1.89 occasions gross sales
  • 1.7 occasions book value and
  • 10.5 periods running
Read More

2 E-Commerce Stocks I’d Buy Right Now (and 1 I’d Cautiously Consider)

Picture resource: Getty Pictures

Prepared by Andrew Button at The Motley Idiot Canada

E-commerce stocks are out of favour in 2022. Really significantly each individual huge enterprise in the sector is down huge this calendar year, and it’s not tricky to see why. In 2020, COVID-19 lockdowns compelled retail shops to shut down, foremost to a surge in product sales at e-commerce businesses. In 2022, the lockdowns quite a great deal ended, with the outcome being that e-commerce providers confronted much more levels of competition from suppliers. Predictably, their revenue expansion slowed down.

So, 2022 was a terrible 12 months for e-commerce. That’s just a simple fact. But it is also a rationale why e-commerce may be set for much better fortunes in the foreseeable future. Firms go as a result of their ups and downs — typically, getting them at their very low factors final results in top-quality returns. It’s unlikely that a increasing market like e-commerce is likely to collapse the problem this 12 months was mere deceleration (i.e., a growth slowdown) these companies did not essentially shrink. So, numerous of them could be persuasive purchases at today’s prices.

In this write-up I will seem at two e-commerce corporations I’d invest in in 2022 — and a person I’d cautiously take into account.

Get: Alibaba

Alibaba (NYSE:BABA) is a single e-commerce stock I would obtain and have, in reality, bought. It’s a Chinese e-commerce business that bought beaten down in 2021 because of to China’s regulatory crackdown and all over again in 2022 because of China’s COVID outbreaks. From the all-time high set in 2020, BABA stock has fallen about 70%.

It’s been a hard selloff, but it results in a major chance right now. At $86.50, Alibaba inventory is incredibly low cost, buying and selling

Read More