The holiday season is upon us, and eCommerce stocks are building steam. This time of year is the prime selling season for most eCommerce sellers.
Retail is still king, but an increasingly larger portion of holiday sales are coming from eCommerce. However, the two sectors are not mutually exclusive. Most, if not all, retailers have eCommerce sales channels, and some eCommerce sellers are expanding to brick-and-mortar locations. While there is a significant intersect between these two sides of the industry, there’s clear evidence that digital sales are becoming more important in today’s marketplace.
Best eCommerce Stocks
The eCommerce industry is extremely crowded and, resultantly, very competitive. There are hundreds of companies getting it right, but these are a few of the top players.
Shopify Inc. (SHOP)
Shopify is one of the best-performing eCommerce stocks in 2019. Share prices gained 145% since the start of the year and the future looks promising for this up-and-coming company.
Third-quarter 2019 earnings came in at 13 cents per share, higher than the consensus estimates of 11 cents. It was more than triple the 4-cent EPS the company reported for Q3 2018. The report rallied Shopify’s shares, and it has strong momentum to close out the year.
Amazon.com Inc. (AMZN)
Amazon’s stock is up by 20% since the start of the year, despite facing stiff competition from the likes of Walmart and other retail giants. Most investors would be happy with a 20% return, but that’s less than the S&P 500 earned this year. However, Amazon is a market leader. and the firm has a significant presence in cloud computing, digital streaming, and artificial intelligence.
This stock could bump into a potential catalyst in a few months. The US government is considering making Amazon a key provider of office supplies. The deal could land Amazon a large chunk of the $50 billion the US government spends on supplies every year. That’s enough to move the needle for shareholders, even for a behemoth like Amazon.
Wall Street’s smartest traders love this stock. Yahoo Finance found that Amazon ranks third among the most popular hedge fund holdings.
Despite the stiff competition in the eCommerce space, Amazon remains one of the most valuable stocks in the sector. The company still has room for growth and could lead the market for years to come. However, the company has faced some antitrust scrutiny of late and any negative headlines could be an issue for share prices.
Walmart Inc. (WMT)
Walmart is another multinational American retailer that has a significant online presence. The company’s stock price is up by 28% year-to-date. However, it could surge further as the holiday season commences.
Walmart’s dive into eCommerce is providing stiff competition to sellers like Amazon and eBay, and the company is working overtime to attract more customers. Walmart has been making massive e-commerce sales from its grocery business. Its online sales surged by 41% during the previous quarter, and digital sales growth could fuel more gains in share prices.
Analysts expect Walmart’s eCommerce market to grow beyond groceries and branch out into other categories. The diversification of its eCommerce outlet could see Walmart provide fierce competition to Amazon in this sector.
More eCommerce Stocks Leading the Pack
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