E-Commerce Stocks To Buy Ahead Of The Holiday Shopping Season

E-Commerce Stocks To Buy Ahead Of The Holiday Shopping Season

Our theme of E-Commerce Stocks – which is comprised of U. S.-based e-commerce companies as well as logistics, and payment players, has returned about 16% year-to-date, slightly underperforming the S&P 500 which remains up by about 19. 5% over the same period. The retail sector is poised for a strong holiday shopping season as consumers have more money to spend given the stimulus payments, strong trends in wages, and rising household wealth. Recent trends have been encouraging, with retail spending for the month of September rising 13. 9% year-over-year per the Census Bureau, without adjusting for inflation. Although brick and mortar stores are likely to be big beneficiaries as people increasingly venture out with the economy reopening and Covid-19 cases on the decline, we still expect e-commerce players to hold their own given the convenience, wide selection, and low prices. Within our theme, eBay (EBAY) stock has been the strongest performer, rising by about 48% year-to-date, driven by stronger demand growth and also due to its lower valuation multiples which have helped it capitalize on the broader rotation from high-growth to value stocks over the last few months. On the other side, FedEx (FDX) has been the weakest performer, with