In the wake of a rebounding economy and falling inflation rates, e-commerce stocks are poised to take center stage in 2024. The recent surge in sales during the holiday season hints at a power-packed fourth quarter performance for online retailers, laying a promising foundation for the forthcoming year. The upward trajectory in consumer spending and economic recovery underscores a bullish outlook for e-commerce stocks in 2024. Moreover, the digital marketplace continues to thrive post-pandemic, and the trend should continue to escalate as each new consumer generation navigates the digital shopping sphere. Savvy investors should seize the moment to wager on the top e-commerce stocks in anticipation of robust gains in a landscape where digital storefronts continue to dominate the retail horizon.
E-Commerce Stocks 2024: Shopify (SHOP)
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Shopify’s(NYSE:SHOP)stock trajectory has been nothing short of a rollercoaster, with an impressive rebound nearly doubling its value over the past year following a major plunge in 2022. Moreover, its financials have followed suit with another strong showing in the third quarter, beating expectations across both lines for the fifth consecutive quarter. With a striking sales growth of 25.5%, amounting to $1.71 billion, and net income soaring to $718 million, Shopify didn’t just meet industry forecasts; it soared past them, surpassing estimates by comfortable margins.
Looking ahead, the horizon for Shopify appears even more promising. Buoyed by the firm’s stellar performance, analysts have revised their projections 30 times for the fourth quarter, anticipating an incredible sales leap to $2.07 billion. As we step into 2024, Shopify is poised to demonstrate unwavering strength. If the firm can maintain its momentum in surpassing earnings expectations, the potential for significant upside is undeniable, making Shopify a standout in its niche.
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Prologis (PLD)
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Positioned at the epicenter of the industrial real estate landscape, Prologis (NYSE:PLD) stands as a true titan, with multiple tailwinds igniting its prospects. A seismic shift in the financial terrain is anticipated, with private equity real estate investments poised to rise significantly due to the forecasted drop in interest rates.
Despite issuing modest 2024 earnings guidance amidst market challenges, Prologis is set to outshine expectations. Analysts predict an incredible 25% hike in fiscal 2025 funds from operations to $6.23, significantly surpassing its 5-year historical CAGR of 13.1%. Additionally, its financial positioning is outstanding, evidenced by a noteworthy increase in free cash flow per share from $5.25 last year to $6.04 on a trailing twelve-month basis.
Echoing this optimism, Tiprank’s assigns Prologis a ‘strong buy’ rating, hinting at a minimum 12% ascent from its current stance, positioning it as a beacon in the real estate forecast for the current year.
Walmart (WMT)
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Walmart(NYSE:WMT) has emerged as a prudent investment choice, effectively blending its traditional retail dominance with an aggressive digital expansion. The retail giant’s post-pandemic transformation, marked by an array of third-party sellers and an optimized logistics network, efficiently yields tangible results. Additionally, Walmart’s third-quarter fiscal 2024 report continues to shine, revealing an amazing 15% surge in global e-commerce sales to a staggering $24 billion. This isn’t mere market maintenance; it’s a strategic evolution, positioning the company on a trajectory of continued growth and innovation.
Reflecting on Walmart’s digital journey, a notable insight from Oberlo underscores the magnitude of its e-commerce ascension. From 2019 to 2023, the retailer’s online sales skyrocketed, more than tripling while charting an impressive average annual growth rate of 36.6%. This remarkable progress cements Walmart’s status as a retail juggernaut and a dynamic, forward-looking contender.
Jumia Technologies (JMIA)
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Jumia Technologies (NYSE:JMIA) acclaimedasthe “Amazon (NASDAQ:AMZN) of Africa,”is poised for a robust showing in 2024, targeting a largely untapped market of 1.4 billion in burgeoning regions. Unlike its colossal counterpart Amazon, Jumia’s regional focus gives it a sizable edge. Having navigated through the pandemic-led headwinds and post-pandemic slowdown, Jumia has emerged resilient, streamlining operations, enhancing liquidity, and expanding its delivery network.
The company’s journey toward profitability is gaining momentum, as shown by its most recent earnings report, which showcases the narrowest loss since its market debut five years ago. As a pioneer on the African continent, Jumia represents a singular small-cap investment, capturing international markets with its distinctive presence. Moreover, trading at an attractive 1.7 times book value and with forward revenue projections indicating a shift from a negative to a positive growth rate, Jumia is shaping up as a compelling investment in its niche.
Alibaba (BABA)
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Alibaba(NYSE:BABA) has weathered a significant storm, with its valuation experiencing more than a 50% descent in the past five years amidst a broader downturn for Chinese tech stocks. Yet, the tide appears to be turning, fueled by a robust $278 billion market support initiative from Beijing.
Likewise, the firm’s resilience is further evidenced by a notable 9% surge in its top line, reaching a massive $30.8 billion year-over-year (YOY). A standout performance from Alibaba International, marked by a remarkable 53% revenue bump and a major reduction in EBITA losses, speaks volumes about the firm’s market prowess and operational agility. Strategic partnerships, like that with Cainiao, have revolutionized logistics, ensuring swifter deliveries. Meanwhile, introducing the ‘Choice’ service on AliExpress, guaranteeing free shipping and returns, has significantly improved the consumer experience. Moreover, the platform’s soaring order volumes across key regions accentuate Alibaba’s dominant market stance, especially in emerging markets.
Visa (V)
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Visa(NYSE:V) stands out in the e-commerce landscape, with its powerful global payment network serving as the backbone of secure and rapid online transactions. Its commitment to technological innovation and its universal acceptance render it a leading player in digital commerce, fueling consistent sales expansion. Additionally, amidst macroeconomic fluctuations, Visa’s resilience is noteworthy, consistently delivering robust growth in both revenue and earnings.
The company’s transaction prowess is evident, with volumes rising from $2.995 trillion to $3.824 trillion over three years, marking an impressive 27.7 % increase. The third quarter alone saw revenues jump to a whopping $8.1 billion, a 12% YOY increase, and a 9% rise in payment volumes. As the world gravitates towards digital solutions, the uptrend in card usage positions Visa to reap substantial benefits. Adding to its appeal, Visa boasts a commendable record of dividend growth, stretching across 15 consecutive years, with an annual payout of $2.08.
PDD (PDD)
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PDD(NASDAQ:PDD) stands out in the e-commerce realm, with its platforms Pinduoduo and Temu, captivating a global audience across more than 40 countries. Moreover, the allure of low-cost yet quality offerings has skyrocketed Temu’s popularity, amassing over 100 million users drawn to its deep discounts and varied product range. This strategic expansion has bolstered PDD’s presence in the e-commerce sector.
Furthermore, demonstrating consistent financial prowess, PDD has a track record of surpassing expectations, a streak it continued in the third quarter with impressive top and bottom-line results. It generated a whopping sales figure of $9.65 billion, a 96% improvement from the prior-year period, beating estimates by $2.2 billion. More importantly, it posted an EPS of $1.63, which beat estimates by 47 cents. Additionally, analysts expect another blockbuster showing for the company in its fourth quarter, with an expected sales figure of $10.7 billion, an 85% bump from the same period last year.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article.The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
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