4 Ecommerce Stocks to Watch in May 2022
Are these the best e-commerce stocks to invest in today?
E-commerce stocks could be worth looking into on the exchange this week. Overall, this would be due to the current focus on the broader retail industry. Notably, the US Department of Commerce just released its latest monthly consumer spending figures earlier today. To highlight, April retail sales rose 0.9% overall as general demand and inflation boosted spending. For reference, the consensus of Dow Jones economists was expecting a 1% increase. Despite the seemingly less than ideal spending environment, consumers continue to hold their own with sales up for the fourth consecutive month.
Not to mention that several top e-commerce stocks are taking center stage on the earnings front this week. For starters, the tastes of JD.com (NASDAQ: JD) and walmart (NYSE: WMT) provided their latest quarterly financial updates earlier today. Overall, both companies beat Wall Street’s consensus revenue projections. The same time, Pinduo-duo (NASDAQ: PDD) is also gaining traction with a recent update from JP Morgan (NYSE: JPM). Earlier today, the company now has a price target of $55 and an overweight rating on PDD stocks. Overall, e-commerce stocks seem to be gaining attention in the stock market today. Could any of these companies be your next big investment?
E-commerce stocks to buy [Or Sell] This week
Home Depot Inc.
Starting today, we have Home deposit, one of the largest home improvement retailers in the world. With more than 2,300 stores in North America, the company provides tools, construction products, appliances and services. It also has more than 70 distribution centers in the United States alone. The company also has an impressive e-commerce business that offers over a million products for DIY customers and professional contractors. Today, the company released its first quarter financial statements.
First, it reported sales of $38.9 billion for the quarter, a 3.8% year-over-year increase. It would be the highest quarter for sales in company history. Second, net income for the quarter was $4.2 billion or $4.09 per diluted share. Home Depot says that after comparing historic growth to last year and despite a slower start to the year, it managed to deliver another strong quarter. To top it off, the company is also raising its guidance for fiscal 2022 and now expects an operating margin of around 15.4% and diluted earnings per share growth in the mid-digits. All things considered, is it worth investing in HD stocks right now?
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Sea Limited is a leading e-commerce company headquartered in Singapore. The company has three main businesses covering the e-commerce, digital entertainment and digital payments markets. Shopee, its e-commerce platform is the largest in Southeast Asia and Taiwan. Additionally, Shopee was the top e-commerce brand in YouGov’s “Best Global Brands 2021” and ranked sixth overall. SE stock is up more than 12% on today’s opening bell. The company also released its first quarter financial statements.
Diving, the company reported total GAAP revenue of $2.9 billion, a 64.4% year-over-year increase. Total gross profit was $1.2 billion, up 81.3% year-over-year. This was driven by gross orders which totaled 1.9 billion, up more than 70% year-on-year. Gross merchandise value was $17.4 billion for the quarter, a 38.7% year-over-year increase. In Southeast Asia and Taiwan respectively, Shopee continues to rank #1 in the Shopping category in terms of average monthly active users and total time spent in-app for the first quarter of 2022. With that in mind , are SE stocks worth adding to your portfolio right now?
then, we have Soft, an online e-commerce company that runs a pet food retail business. It strives to be one of the most trusted and convenient destinations for pet parents and partners around the world. Essentially, it offers the personalized service of a neighborhood pet store along with the convenience and speed of e-commerce. The company offers a wide selection of over 100,000 products, including pet foods and medicines.
In late March, the company released its fourth quarter and fiscal year 2021 financial statements. Net sales for the quarter were $2.39 billion, an increase of more than 17% year over year. the other. “Our ability to drive 24% net sales growth in 2021, on top of the outsized growth we achieved last year, reflects the sustainability of our business and the pet category beyond the benefits. short term of the pandemic, and is a strong testament to Chewy’s ability to execute in the face of rapidly changing macro conditions,” said Sumit Singh, chief executive of Chewy. Additionally, Singh notes that Chewy’s net sales per active customer hit an all-time high of $430 in the quarter. This would show consumers’ lingering loyalty to the company’s offerings. With all that in mind, would CHWY shares be a top buy on your books?
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Wrapping up this list today, we have Etsy, an e-commerce company that focuses on handmade and vintage items. These would include jewelry, bags, furniture, and arts and crafts. Items that are at least 20 years old are only considered vintage by the company. Moreover, its marketplace platform connects millions of buyers and sellers around the world. For sellers, Etsy also offers a range of tools and services that can meet their core business needs.
On May 4, 2022, the company also released its first quarter financial statements. Its highlights include consolidated gross merchandise sales (GMS) of $3.3 billion, up 3.5% year-over-year. Consolidated revenue for the quarter was $579.3 million, a 5.2% year-over-year increase. Additionally, net income for the quarter was $86.1 million. Etsy says that despite continued uncertainty and macro headwinds, it continues to deliver strong results that show it is holding onto most of its gains. With this information, is ETSY stock worth buying today?
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