Services
6 Stocks to Buy With Major Upside in Rising Secular E-Commerce Shifts
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E-commerce has been perhaps the biggest winner from the coronavirus pandemic. As more people are staying home and shopping online, this industry has been proven viable and the trend has accelerated by years. The stay-at-home economy in general has seen a big boost, but consumerism is ultimately the driving force.
Physical retail was already shifting dramatically before the pandemic, and this only kicked into high gear in the first half of 2020. It doesn’t appear that the economy will return to the way it was, at least according to one analyst.
In a recent report, Wedbush said that it expects retailers to continue to close stores and shift to online and omnichannel strategies, which include ordering online and picking up in-store, curbside pickup, in-store fulfillment and pure-play e-commerce. In short, the retail landscape will look dramatically different in the coming years.
One of the main points that Wedbush emphasized:
Ecommerce will see material growth over the next five years plus, no matter how much consumer behavioral change trends are pulled forward today, but any pull forward creates billions of dollars of incremental market opportunity in the US, and trillions globally.
The boutique brokerage firm has picked a few companies in its coverage universe that it thinks will benefit greatly from this accelerating trend.
Wix.com Ltd. (NASDAQ: WIX) is rated as Outperform. Wedbush increased its price target to $275 from $220, implying an upside of 14.0% from the most recent closing price of $241.28. The stock has a consensus price target of $218.24 and a 52-week trading range of $76.81 to $250.95.
GoDaddy Inc. (NYSE: GDDY) was reiterated with an Outperform rating. The firm raised its price target to $85 from $80, implying an upside of 12.4% from the most recent closing price of $75.59. The consensus price target is $83.69, and the 52-week trading range is $40.25 to $84.49.
Shopify Inc. (NYSE: SHOP) has the lone Neutral rating of the group. However, Wedbush did raise its price target to $850 from $650, but that still implies a downside of 5.2% from the most recent close at $897.00. The consensus price target is $743.86. The 52-week trading range is $282.08 to $928.00.
eBay Inc. (NASDAQ: EBAY) is rated as Outperform. Wedbush increased its price target to $58 from $56, implying an upside of 18.9% from the most recent close of $48.77. The stock has a consensus price target of $48.18 and a 52-week trading range of $26.02 to $51.88.
Etsy Inc. (NASDAQ: ETSY) has an Outperform rating. Wedbush recently raised its price target to $115 from $88, implying an upside of 17.1% from the most recent closing price of $98.17. The consensus price target is $84.41, and a 52-week trading range is $29.95 to $103.94.
Pinterest Inc. (NYSE: PINS) was reiterated with an Outperform rating. The firm raised its price target to $26 from $21, implying an upside of 12.2% from the most recent close of $23.17. The stock has a consensus price target of $21.00. Its 52-week trading range is $10.10 to $36.83.
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