Global E-Commerce Stocks: a lot to shop for
The rise of the Internet and digital devices has changed the way we work, study and communicate - and also the way we shop. Just 20 years ago buying something online was something almost unheard of even in countries with the most developed connectivity infrastructures; in 2022 it is the preferred way of shopping for many consumers.
Shopping online is cheaper, faster and greener
Rapid urbanization across the globe together with increasing internet penetration and usage of mobile devices to access e-commerce portals, is providing a boost to the market growth. The market is further driven by the increasing preference for fast, hassle-free and affordable shopping, as well as the growing influence of social networking platforms on shopping habits.
For businesses, e-commerce is the fastest, cheapest and easiest way to grow and expand as it enables organizations to conduct business without maintaining a physical presence, thereby minimizing the infrastructure, communication and overhead costs - and lessening the environmental impacts. Additionally, the advent of private-label and direct to consumer-based business models is also creating a positive outlook for the market growth. This enables the organizations to collect and use consumer data and provide personalized products and experiences to the consumer.
Online shopping is continuing to grow
The Covid-19 pandemic with its lockdowns and social distancing measures provided a substantial push to e-commerce activities; although the industry has been expanding rapidly over the years before that. Now, with the pandemic subsiding, worldwide e-commerce growth is stabilizing at lower rates, closer to those seen before 2020. However, even in a slower-growth environment, total new spending is expected to be enormous. Worldwide digital sales will grow 12.2% this year, slow by the pandemic-times standards. But that will still amount to $603.68 billion more spending than last year, one of the largest leaps ever.
This year, worldwide e-commerce sales will exceed $5 trillion for the first time, accounting for more than 20% of overall retail sales. Although that percentage is skewed by a few countries where e-commerce penetration is already very high (such as China, where online sales are half of total retail sales) the trend is visible worldwide. Despite slowing growth, total global e-commerce spending is forecast to grow by 50% over the next four years, surging past $7 trillion by 2025.
Naturally, the rates of growth in E-Commerce are expected to be higher in countries with lower penetration: while China hasn't got much room for further rapid growth, other Emerging Markets, as well as some Industrialized countries, are expected to remain on an accelerated path to further E-Commerce expansion. Investors wishing to capitalize on these rapid growth rates are advised to look into E-Commerce stocks outside of the Big Three - Amazon, Ebay and Shopify.
There’s life in E-Commerce outside of The Big Three
While it’s common for investors to set their sights on large, household names like Amazon when trying to enter the market, there are many other companies and regions that have high growth potential, providing wonderful investment opportunities.
To explore these opportunities, investors don’t need to search for data, often unavailable in any language except for a local one, and try to perform fundamental analysis themselves as these stocks aren’t covered by mainstream analysts. Deshe’s AI analyst covers these stocks - and 44,000 more - and follows its research and analysis with bias-controlled, logical and fundamentals-based investment recommendations in any language.
So let’s have a look at some of the E-Commerce stocks around the world recommended by Deshe’s AI.
Global Top E-Commerce Co. (002640)
|P/E (vs Industry)||7.7 (19.5)|
Global Top E-Commerce is a China-based global online retail business engaged in cross-border E-Commerce. The company, founded in 1995, offers its products through online B2C sales platforms, such as Gearbest and Zaful, as well as through third-party platforms.
Although Global’s revenue and earnings suffered due to supply chain issues emanating from Covid-19, Deshe’s AI analyst has registered impressive financial factors in Global’s latest reports revealing its underlying strength and making a strong case for anticipating significant upside potential for the stock.
Focus Technology Co., Ltd. (002315)
|P/E (vs Industry)||16.2 (19.5)|
Focus Technology Co., Ltd., founded in 1996, operates a number of e-commerce platforms, such as Made-in-China.com, in China and internationally. The company also offers services such as marketing, logistics, design and business information, through several B2B platforms.
Focus’ latest financial report was positive, taking into account various ongoing blows from Covid-19. Deshe’s AI analyst has registered impressive financial factors revealing its underlying strength, which should make them more attractive than their peers going forward.
Groupe LDLC Société Anonyme (ALLDL)
|P/E (vs Industry)||4.8 (23.2)|
Groupe LDLC Société Anonyme operates as an online IT and high-tech equipment retailer. It operates 15 retail brands and 7 E-Commerce websites, as well as a chain of brand stores and franchises. The company was founded in 1996 and is headquartered in France.
LDLC’s latest financial report showed many positive metrics. Their positive income, growth, and value factors indicate that it is likely to continue to produce strong results in the next quarters.
Moonpig Group PLC (MOON)
|P/E (vs Industry)||17.6 (24.5)|
Moonpig Group PLC, together with its subsidiaries, provides online greeting cards and gifts in the Netherlands and the United Kingdom. It sells its products under the Moonpig and Greetz brands through websites and mobile apps. The company was founded in 2000 and is headquartered in London.
Moonpig's latest financial results were demonstrably positive, with an increase in net income and EPS vs the previous period. The company is forecast to register high annual earnings growth in the next quarters. The fundamentals of Moonpig’s report indicate a strong growth potential for Moonpig's stock's price moving forward.
Golf Digest Online Inc. (3319)
|P/E (vs Industry)||16.2 (18.2)|
Golf Digest Online Inc. engages in the e-commerce business in Japan and internationally. The company sells golf equipment, apparel, and accessories through GDO GOLFSHOP, an online shop, as well as through 6 brick and mortar stores. It also provides booking services, information on golf courses, golf course software services, etc. Golf Digest Online was founded in 1995 and is headquartered in Tokyo, Japan.
Golf Digest’s latest financial results had several impressive financial metrics, specifically ROE, ROA, return on capital and debt-to-equity ratio, that should make them more attractive than their peers going forward.
Naspers Limited (NPN)
|P/E (vs Industry)||5.0 (17.4)|
Naspers operates in the consumer internet industry worldwide. It operates through classifieds, food delivery, payments and Fintech, Edtech, and other E-commerce segments. The company substantially extended its E-Commerce presence in 2015 through its investment in Takealot, South Africa's largest e-commerce retailer.
Naspers’ latest financial results showed impressive growth in revenues, net cashflow and net profit margins. Although EBITDA margins are still negative, the latest results showed a positive upward trend. Naspers is expected to continue this positive performance in the coming months, making the stock attractive versus its peers.
Diversifying Your Portfolio
During times of economic volatility, it can be challenging to keep up with all the changes happening across markets, but with Deshe Analytics, investors can look at current data which will aid in the decision-making process. Instead of providing dense, confusing information, our AI-based research compiles everything you need to know before making a trade in a digestible way. E-commerce will continue rapid growth worldwide, filling the industry with a range of investment opportunities. There are many more e-commerce investment options than Ebay and Amazon; we challenge you to dive deeper, using our platform for guidance when needed.