E-commerce has been breathing life into the retail sector ever since the pandemic struck. In fact, had e-commerce not been there, the retail sector would have taken a more serve beating. And one year down the line, more people today are shopping online given the convenience and safety it promises compared to visiting physical stores.
According to a new report Adobe Analytics, e-commerce is heading toward a milestone year in 2022, as more people continue to shop online. And it seems the trend is likely to continue as there are still no signs of the pandemic easing.
Solid Year for E-Commerce
According to a new report from Adobe Analytics, the COVID-19 pandemic helped boost online sales by $183 billion. The figure represents sales in the month of March 2020, when the virus started spreading in the United States through February 2021.
Consumers spent a record $844 billion on shopping during this time. Overall, consumers spent $813 billion on online shopping in 2020 as they mostly stayed home on fear of contracting the virus, reflecting an increase of 42% year over year. Interestingly, this year-over-year jump of $183 billion is almost the total sales generated during the last holiday season (November to December 2020) when consumers spent $188.2 billion on shopping online.
E-commerce Headed for a Better Future
The report further mentions that e-commerce will continue to bolster retail sales in the near term, reaching $1 trillion by 2022. This will also make it the first time that online sales will hit the $1 trillion mark.
After a record 2020, online sales have been doing well this year too. The first two months of 2021 have already seen consumers spending $121 billion shopping online. This reflects a 34% year-over-year jump.
Also, both in-store and curbside pickup services grew in acceptance by 67% on a year-over-year basis as of February 2021.
According to Adobe, the trend will continue as people are still shopping online on fears of contracting the virus. Adobe predicts that if the current growth rate continues, online sales will reach something between $850 billion and $930 billion by 2021.
E-commerce has been helping the retail sector and the trend is likely to continue given that the coronavirus fears are far from over. Moreover, they have started realizing that shopping online is convenient and comes with a set of advantages. This thus makes for an opportune time to invest in stocks with a strong online presence.
Five Below, Inc. FIVE is a specialty value chain retailer that provides a wide range of premium quality and trendy merchandise for $5 or below.
The company’s expected earnings growth rate for the current year is 91%. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the past 60 days. Five Below carries a Zacks Rank #2 (Buy).
Hibbett Sports, Inc. HIBB typically caters to small counties with a population ranging from 25,000-75,000. Its merchandise assortment is focused on footwear, athletic equipment and apparel.
The company’s expected earnings growth rate for next year is 5.9%. The Zacks Consensus Estimate for current-year earnings has improved 41.1% over the past 60 days. Hibbett Sports has a Zacks Rank #1.
Ethan Allen Interiors Inc. ETH is a leading interior design company, and manufacturer and retailer of quality home furnishings. The company offers free interior design service to its clients and sells a full range of furniture products and decorative accessories through ethanallen.com and a network of the Design Centers in the United States and abroad.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 49.2% over the past 60 days. Ethan Allen has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
L Brands, Inc. LB evolved from an apparel-based specialty retailer to a segment leader focused on women’s intimate and other apparel, personal care, beauty and home fragrance products.
The company’s expected earnings growth rate for next year is 21.9%. The Zacks Consensus Estimate for current-year earnings has improved 32.3.1% over the past 60 days. L Brands sports a Zacks Rank #1.
Tapestry, Inc. TPR is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The company offers lifestyle products, which include handbags, women’s and men’s accessories, footwear, jewelry, seasonal apparel collections, sunwear, travel bags, fragrances and watches.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 12.3% over the past 60 days. Tapestry has a Zacks Rank #2.
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Hibbett Sports, Inc. (HIBB) : Free Stock Analysis Report
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