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The Zacks Analyst Blog Highlights: JD, STMP, FVRR and GRPN
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For Immediate Release
Chicago, IL – August 27, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include JD.com (JD - Free Report) , Stamps.com , Fiverr International (FVRR - Free Report) and Groupon (GRPN - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
4 E-Commerce Stocks to Buy on Online Sales Spike
The coronavirus pandemic has brought about a sea change in the e-commerce industry, making it an inevitable part of day-to-day lives courtesy of social distancing and stay-at-home restrictions.
The resurgence of coronavirus cases, and increasing health risks and deaths related to the same have made people apprehensive, which in turn is leading to growing adoption of e-commerce.
Additionally, the need for door-to-door delivery of essentials during this crisis scenario is continuously resulting in rising online orders worldwide. Moreover, the growing proliferation of fast delivery services being offered by the online retailers is driving online sales amid the current scenario.
According to latest data by Adobe Analytics, online sales in July 2020 reached $66.3 billion, surging 55% on a year-over-year basis. Adobe suggests that the figure is expected to surpass the total online sales in 2019 by October 2020, per the same report.
Also, solid momentum across online grocery sales, which has reached unexpected heights so far this year owing to COVID-19, has been fueling online retail sales globally since the onset of this pandemic.
This is evident from the robust performance of the Global X E-Commerce ETF, which has gained 56.2% on a year-to-date basis.
Moreover, blockbuster performance delivered by the e-commerce giant Amazon (AMZN - Free Report) in second-quarter 2020, driven by robust online grocery sales that tripled year over year, and its positive outlook is testament to the fact that the e-commerce space is likely to sustain this momentum for the time being.
Stellar results reported by other e-commerce players such as MercadoLibre and others reinforce the sentiment further that the e-commerce space currently provides ideal investment options.
According to a report from Statista, e-commerce space is expected to cross revenues of $2.3 trillion in 2020. Further, the report suggests that revenues are anticipated to witness a CAGR of 8.1% between 2020 and 2024 to reach $3.1 trillion by 2024.
Our Picks
Given this upbeat scenario, investors can tap the potential of the following e-commerce stocks, as they are well-poised to capitalize on the prospects present in the online retail space on the back of their strong fundamentals.
JD.com is riding on its JD Retail segment — a key catalyst courtesy of its robust omni-channel strategy. Moreover, its deepening focus toward ensuring supply and fulfillment of essential products to customers during the ongoing pandemic situation remains commendable.
The company’s New Businesses segment is also a major positive. Further, strengthening momentum across JD logistics, Flash Delivery initiative, and supply chain and technology capabilities are other tailwinds. Moreover, the integration of AI into JD’s warehouse network is expected to continue facilitating the delivery of its direct sales orders.
The consensus mark for 2020 earnings has been revised upward by 20.8% in the past 30 days to $1.51 per share.
Stamps.com is gaining on accelerated rate of customer acquisition and increasing shipment volume owing to COVID-19. Additionally, strengthening package volumes are favoring the company.
Further, the ramp up of its United Parcel Services partnership to all platforms is a tailwind. Moreover, the company’s long-term reseller agreement with United States Postal Service, with benefits to higher volume customers remains a major positive.
Stamps.com currently sports a Zacks Rank #1. The consensus mark for 2020 earnings is pegged at $7.36 per share which moved towards north by 57.6% over the past 30 days.
Fiverr International’s platform, which connects people offering logo, poster and brochure designing, photoshop editing, content marketing, web analytics, translation and other services with people outsourcing such work to freelancers, remains a major positive due to the increasing remote working trend on account of the coronavirus pandemic.
Furthermore, the launch of four industry stores — Gaming, E-commerce, Architecture and Politics — is expected to aid the company in expanding catalog and gaining momentum across larger businesses. Also, the company’s accelerated AI efforts through personalization and customer support are likely to drive sales in the near term.
Additionally, the company’s focus on international expansion is a tailwind. The expansion of its global marketplace to two new languages —French and Spanish is a positive.
Fiverr currently carries a Zacks Rank #2 (Buy). The consensus mark for 2020 earnings is pegged at 21 cents per share, which narrowed down from a loss of 31 cents in the past 30 days.
Groupon has been benefiting from restructuring efforts and the coronavirus crisis-led e-commerce boom. The company is focusing on higher-margin healthy food offerings, which is likely to drive business growth. Also, its efforts for reducing dependence on goods deals and shifting focus toward the local services market are positives.
Further, its recent partnership with Redzy remains noteworthy. It is expected to bolster customer engagement on Groupon Connect, which is its next-generation API that facilitates partners to join the marketplace relatively faster and seamlessly.
Groupon currently carries a Zacks Rank #2. The consensus mark for 2020 is pegged at a loss of $3.99 per share, having narrowed from a loss of $5.16 per share in the past 30 days.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: JD, STMP, FVRR and GRPN
For Immediate Release
Chicago, IL – August 27, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include JD.com (JD - Free Report) , Stamps.com , Fiverr International (FVRR - Free Report) and Groupon (GRPN - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
4 E-Commerce Stocks to Buy on Online Sales Spike
The coronavirus pandemic has brought about a sea change in the e-commerce industry, making it an inevitable part of day-to-day lives courtesy of social distancing and stay-at-home restrictions.
The resurgence of coronavirus cases, and increasing health risks and deaths related to the same have made people apprehensive, which in turn is leading to growing adoption of e-commerce.
Additionally, the need for door-to-door delivery of essentials during this crisis scenario is continuously resulting in rising online orders worldwide. Moreover, the growing proliferation of fast delivery services being offered by the online retailers is driving online sales amid the current scenario.
According to latest data by Adobe Analytics, online sales in July 2020 reached $66.3 billion, surging 55% on a year-over-year basis. Adobe suggests that the figure is expected to surpass the total online sales in 2019 by October 2020, per the same report.
Also, solid momentum across online grocery sales, which has reached unexpected heights so far this year owing to COVID-19, has been fueling online retail sales globally since the onset of this pandemic.
This is evident from the robust performance of the Global X E-Commerce ETF, which has gained 56.2% on a year-to-date basis.
Moreover, blockbuster performance delivered by the e-commerce giant Amazon (AMZN - Free Report) in second-quarter 2020, driven by robust online grocery sales that tripled year over year, and its positive outlook is testament to the fact that the e-commerce space is likely to sustain this momentum for the time being.
Stellar results reported by other e-commerce players such as MercadoLibre and others reinforce the sentiment further that the e-commerce space currently provides ideal investment options.
According to a report from Statista, e-commerce space is expected to cross revenues of $2.3 trillion in 2020. Further, the report suggests that revenues are anticipated to witness a CAGR of 8.1% between 2020 and 2024 to reach $3.1 trillion by 2024.
Our Picks
Given this upbeat scenario, investors can tap the potential of the following e-commerce stocks, as they are well-poised to capitalize on the prospects present in the online retail space on the back of their strong fundamentals.
JD.com is riding on its JD Retail segment — a key catalyst courtesy of its robust omni-channel strategy. Moreover, its deepening focus toward ensuring supply and fulfillment of essential products to customers during the ongoing pandemic situation remains commendable.
The company’s New Businesses segment is also a major positive. Further, strengthening momentum across JD logistics, Flash Delivery initiative, and supply chain and technology capabilities are other tailwinds. Moreover, the integration of AI into JD’s warehouse network is expected to continue facilitating the delivery of its direct sales orders.
JD.com currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for 2020 earnings has been revised upward by 20.8% in the past 30 days to $1.51 per share.
Stamps.com is gaining on accelerated rate of customer acquisition and increasing shipment volume owing to COVID-19. Additionally, strengthening package volumes are favoring the company.
Further, the ramp up of its United Parcel Services partnership to all platforms is a tailwind. Moreover, the company’s long-term reseller agreement with United States Postal Service, with benefits to higher volume customers remains a major positive.
Stamps.com currently sports a Zacks Rank #1. The consensus mark for 2020 earnings is pegged at $7.36 per share which moved towards north by 57.6% over the past 30 days.
Fiverr International’s platform, which connects people offering logo, poster and brochure designing, photoshop editing, content marketing, web analytics, translation and other services with people outsourcing such work to freelancers, remains a major positive due to the increasing remote working trend on account of the coronavirus pandemic.
Furthermore, the launch of four industry stores — Gaming, E-commerce, Architecture and Politics — is expected to aid the company in expanding catalog and gaining momentum across larger businesses. Also, the company’s accelerated AI efforts through personalization and customer support are likely to drive sales in the near term.
Additionally, the company’s focus on international expansion is a tailwind. The expansion of its global marketplace to two new languages —French and Spanish is a positive.
Fiverr currently carries a Zacks Rank #2 (Buy). The consensus mark for 2020 earnings is pegged at 21 cents per share, which narrowed down from a loss of 31 cents in the past 30 days.
Groupon has been benefiting from restructuring efforts and the coronavirus crisis-led e-commerce boom. The company is focusing on higher-margin healthy food offerings, which is likely to drive business growth. Also, its efforts for reducing dependence on goods deals and shifting focus toward the local services market are positives.
Further, its recent partnership with Redzy remains noteworthy. It is expected to bolster customer engagement on Groupon Connect, which is its next-generation API that facilitates partners to join the marketplace relatively faster and seamlessly.
Groupon currently carries a Zacks Rank #2. The consensus mark for 2020 is pegged at a loss of $3.99 per share, having narrowed from a loss of $5.16 per share in the past 30 days.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.