We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Online Grocery Sales Rise in November: 4 Stocks to Buy
Read MoreHide Full Article
The retail sector is battling a major crisis with sales plummeting owing to the coronavirus pandemic. However, e-commerce has been somewhat breathing life into the sector, which has in a way saved it from taken a further hit. An increasing number of Americans are relying on online shopping as fears of the deadly coronavirus fail to subside. Although the economy has opened, shopping online — particularly for grocery — remains the preferred choice.
According to a new report by Bricks Meets Click/Mercatus Grocery Shopping Survey, online grocery shopping once again grew in November. The trend is likely to continue as people are finding it more convenient with no risk of getting infected.
Online Grocery Sales Jump in November
According to Bricks Meets Click/Mercatus Grocery Shopping Survey, a total of $8.1 was recorded in online grocery sales in November. Over 60.1 million American households placed 2.8 orders on average during the month. This is the seventh consecutive month when online grocery sales have recorded more than $8 billion.
Moreover, 73% of the total online grocery sales involved delivery and pickup services that accounted for $5.9 billion of the total sales. The remaining $2.2 billion of online purchases were through ship-to-home methods that included orders from online retailers. The number of monthly active users of the delivery and pickup services grew by 3% between August and November.
Coronavirus Driving Online Grocery Sales
Although online grocery sales declined somewhat in October as more people have started visiting brick-and-mortar stores, fears of the second COVID-19 wave once again compelled them to stay indoors, which saw sales picking up in November. Hence, online shopping will remain the preferred choice for most despite the roll out of COVID-19 vaccine.
Stockpiling on fears of coronavirus spreading at a rapid rate saw online grocery sales growth in the first few months. With the rise in new cases over the past month, people are likely to continue shopping online. Also, many who are hesitant to shop at a physical store but at the same time don’t want to pay for certain online grocery items have been going for curbside pickup, which is giving online sales a further push.
Our Choices
Although vaccines are being rolled out, fears have once again started gripping millions as new cases of coronavirus continue to surge. Preventive measures to keep the virus at bay are likely to see people ordering for all household necessities, including grocery, online. Given this situation, it would be prudent to watch out for these five stocks that are likely to rally on a sharp rise in demand for online grocery in the near future.
Target Corporation (TGT - Free Report) has evolved from just being a pure brick & mortar retailer to an omni-channel entity. The company has been investing in technologies, improving websites and mobile apps, and modernizing the supply chain to keep pace with the changing retail landscape and better compete with pure e-commerce players.
The company’s expected earnings growth rate for the current year is 13.9%. The Zacks Consensus Estimate for current-year earnings has improved 1.8% over the past 60 days. Target carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Hain Celestial Group, Inc. (HAIN - Free Report) offers a wide range of popular better-for-you groceries, snacks and tea.
The company’s expected earnings growth rate for the current year is 51.2%. The Zacks Consensus Estimate for current-year earnings has improved 11% over the past 60 days. The Hain Celestial Group holds a Zacks Rank #2.
BG Foods, Inc. (BGS - Free Report) manufactures, sells and distributes a portfolio of shelf-stable and frozen foods, and household products in the United States, Canada and Puerto Rico. Its products include frozen and canned vegetables, oatmeal and hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegars, maple syrups and a range of other products.
The company’s expected earnings growth rate for the current year is 43.3%. The Zacks Consensus Estimate for current-year earnings has improved 5.9% over the past 60 days. BG Foods carries a Zacks Rank #2.
Sprouts Farmers Market, Inc.(SFM - Free Report) , which operates in a highly fragmented grocery store industry, has a unique model that features fresh produce at the center of the store, an expansive bulk foods section, and a vitamin department focused on overall wellness.
The company’s expected earnings growth rate for the current year is 81.6%. The Zacks Consensus Estimate for current-year earnings has improved 2.3% over the past 60 days. Sprouts Farmers has a Zacks Rank #2.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2021?
These 10 are painstakingly hand-picked from over 4,000 companies covered by the Zacks Rank. They are our primary picks to buy and hold.
Image: Bigstock
Online Grocery Sales Rise in November: 4 Stocks to Buy
The retail sector is battling a major crisis with sales plummeting owing to the coronavirus pandemic. However, e-commerce has been somewhat breathing life into the sector, which has in a way saved it from taken a further hit. An increasing number of Americans are relying on online shopping as fears of the deadly coronavirus fail to subside. Although the economy has opened, shopping online — particularly for grocery — remains the preferred choice.
According to a new report by Bricks Meets Click/Mercatus Grocery Shopping Survey, online grocery shopping once again grew in November. The trend is likely to continue as people are finding it more convenient with no risk of getting infected.
Online Grocery Sales Jump in November
According to Bricks Meets Click/Mercatus Grocery Shopping Survey, a total of $8.1 was recorded in online grocery sales in November. Over 60.1 million American households placed 2.8 orders on average during the month. This is the seventh consecutive month when online grocery sales have recorded more than $8 billion.
Moreover, 73% of the total online grocery sales involved delivery and pickup services that accounted for $5.9 billion of the total sales. The remaining $2.2 billion of online purchases were through ship-to-home methods that included orders from online retailers. The number of monthly active users of the delivery and pickup services grew by 3% between August and November.
Coronavirus Driving Online Grocery Sales
Although online grocery sales declined somewhat in October as more people have started visiting brick-and-mortar stores, fears of the second COVID-19 wave once again compelled them to stay indoors, which saw sales picking up in November. Hence, online shopping will remain the preferred choice for most despite the roll out of COVID-19 vaccine.
Stockpiling on fears of coronavirus spreading at a rapid rate saw online grocery sales growth in the first few months. With the rise in new cases over the past month, people are likely to continue shopping online. Also, many who are hesitant to shop at a physical store but at the same time don’t want to pay for certain online grocery items have been going for curbside pickup, which is giving online sales a further push.
Our Choices
Although vaccines are being rolled out, fears have once again started gripping millions as new cases of coronavirus continue to surge. Preventive measures to keep the virus at bay are likely to see people ordering for all household necessities, including grocery, online. Given this situation, it would be prudent to watch out for these five stocks that are likely to rally on a sharp rise in demand for online grocery in the near future.
Target Corporation (TGT - Free Report) has evolved from just being a pure brick & mortar retailer to an omni-channel entity. The company has been investing in technologies, improving websites and mobile apps, and modernizing the supply chain to keep pace with the changing retail landscape and better compete with pure e-commerce players.
The company’s expected earnings growth rate for the current year is 13.9%. The Zacks Consensus Estimate for current-year earnings has improved 1.8% over the past 60 days. Target carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Hain Celestial Group, Inc. (HAIN - Free Report) offers a wide range of popular better-for-you groceries, snacks and tea.
The company’s expected earnings growth rate for the current year is 51.2%. The Zacks Consensus Estimate for current-year earnings has improved 11% over the past 60 days. The Hain Celestial Group holds a Zacks Rank #2.
BG Foods, Inc. (BGS - Free Report) manufactures, sells and distributes a portfolio of shelf-stable and frozen foods, and household products in the United States, Canada and Puerto Rico. Its products include frozen and canned vegetables, oatmeal and hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegars, maple syrups and a range of other products.
The company’s expected earnings growth rate for the current year is 43.3%. The Zacks Consensus Estimate for current-year earnings has improved 5.9% over the past 60 days. BG Foods carries a Zacks Rank #2.
Sprouts Farmers Market, Inc.(SFM - Free Report) , which operates in a highly fragmented grocery store industry, has a unique model that features fresh produce at the center of the store, an expansive bulk foods section, and a vitamin department focused on overall wellness.
The company’s expected earnings growth rate for the current year is 81.6%. The Zacks Consensus Estimate for current-year earnings has improved 2.3% over the past 60 days. Sprouts Farmers has a Zacks Rank #2.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2021?
These 10 are painstakingly hand-picked from over 4,000 companies covered by the Zacks Rank. They are our primary picks to buy and hold.
Start Your Access to the New Zacks Top 10 Stocks >>