Everyone knows how ecommerce has been one of the chief beneficiaries of the pandemic, not only because of people turning to it during the lockdown but also because they will be using it whenever possible for a good long time in the future. The surge in demand also brought new players into the space with existing players seeing their estimates surging. With prices still rushing to catch up, here are some attractive picks in the space-
Beijing, China-based JD.com is as one of the leading online retailers in China, offering a wide range of products through the jd.com website and mobile applications.
Sales expected to be up 19.7% in 2020 and 18.3% in 2021
EPS expected to be up 19.2% in 2020 and 63.8% in 2021
2020 EPS up 41 cents in the last 30 days
2021 EPS up 32 cents in the last 30 days
Average surprise in the last 4 quarters 114.02%
Valuation: On the basis price-to-forward-12 months’ earnings, shares are trading below the median value over the past year, suggesting possibility of further upside.
Jumia Technologies AG (NYSE:JMIA) JMIA
Berlin, Germany-based Jumia Technologies AG is an online seller of apparel and accessories lik dresses, leggings, skirts, polo shirts, belts, watches, sunglasses, health products, beauty products and a range of products for children.
Sales expected to be up 12.5% in 2020 and 31.7% in 2021
Loss per share expected to be down 24.3% in 2020 and 2.8% in 2021
2020 loss per share down 43 cents in the last 30 days
2021 loss per share down 33 cents in the last 30 days
Valuation On the basis of price-to-forward-12 months’ sales, shares are trading just above their median value over the past year, suggesting much more room to run.
Fiverr International (NYSE:FVRR) Lt. FVRR
If you listened when I asked you to pick FVRR back in April, you’re running a neat gain of 112% already. But since the curve still looks steep, I’d say hang on until you see it flatten. With many people out of work because of the pandemic, there’s likely to be more talent around now. On the demand side, companies are seeing the benefit of a remote/flexible workforce. So this segment is likely to remain in demand for a while now.
New York-based Fiverr International Ltd. is an online services marketplace. The company connects people providing logo, poster and brochure designing, photoshop editing, content marketing, web analytics, translation and other services with people outsourcing such work to freelancers.
Sales expected to be up 37.4% in 2020 and 30.6% in 2021
Loss per share expected to be down 39.7% in 2020 and 69.1% in 2021
2020 loss per share down $1.39 in the last 30 days
2021 loss per share down $1.56 in the last 30 days
Average surprise in the last 4 quarters 43.9%
Valuation: Shares are richly valued, just off their annual high, based on price-to-forward-12 months’ sales.
Boston, Massachusetts-based Wayfair is a leading online seller of more than 18 million products from more than 12,000 suppliers of furniture and home decor. Founded in 2002 as multiple e-commerce websites, the company came together as Wayfair.com in 2011. It operates worldwide through Wayfair.com as well as the Joss & Main, AllModern, Birch Lane and Perigold websites.
I know, furniture and home décor aren’t supposed to be hot in times of market uncertainty because without a job, you’re unlikely to go and buy yourself a new home. But the work-from-home trend increased demand for modifications within the home, to accommodate some sort of home office. Some necessary remodeling demand may also be there since new home purchases are getting pushed out, likely to the next spring. At any rate, since estimate revisions are encouraging, prices should sustain or grow from current highs.
Sales expected to be up 36.5% in 2020 and 17.2% in 2021
Loss per share expected to be down 39.6% in 2020 and 28.8% in 2021
2020 loss per share down $1.39 in the last 30 days
2021 loss per share down $1.56 in the last 30 days
Average surprise in the last 4 quarters -0.4%
Valuation: On the basis of price-to-forward-12 months’ sales, shares are trading between their recently-achieved annual high and median values, suggesting more room to run.
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