The eCommerce related stocks on our list could see double-digit growth over the next 12 months
SmallCapPower | April 25, 2017: According to the latest eMarketer forecast, retail eCommerce sales are expected to grow by double-digits through 2020, when sales will top $4 trillion globally. Wal-Mart Stores, Inc. (NYSE: WMT) just announced the hiring of its startup investment arm, ‘Store No 8,’ to expand and develop Wal-Mart’s eCommerce business as retail giants race to gain market share. Presently, eCommerce only accounts for approximately 10% of all retail transactions in North America, whereas in China, online sales account for nearly twice that. Today we have identified those companies operating in the eCommerce sector, from digital advertising to platforms connecting merchants to online consumers, which analysts expect will grow revenues as much as 72% over the next twelve months (NTM). These high-growth stocks look attractive, considering they operate in one of the fastest-growing technology subsectors.
Groupon Inc. (NASDAQ: GRPN) – $3.88
Discount Stores
Groupon, Inc. operates online local commerce marketplaces around the world that connect merchants to consumers by offering goods and services at a discount. It offers goods and services in three primary categories: Local Deals (Local), Groupon Goods (Goods) and Groupon Getaways (Travel). Its Local category includes offerings from local and national merchants, as well as local events. Its Goods category offers customers the ability to find deals on merchandise across various product lines, including electronics, sporting goods, jewelry, toys, household items and apparel. Through its Travel category, it features travel offers at both discounted and market rates, including hotels, airfare and package deals covering both domestic and international travel.
- Market Cap: $2,180.8 million
- Total Revenue (LTM): $3,143.4 million
- Expected Revenue Growth (NTM/LTM): 20.2%
- YTD Price PCT Change: 16.9%
HubSpot Inc. (NYSE: HUBS) – $64.10
Software
HubSpot, Inc. (HubSpot) provides a Cloud-based marketing and sales software platform. Its software platform features integrated applications to help businesses attract visitors to their Websites, convert visitors into leads, close leads into customers and delight customers so that they become promoters of those businesses. These integrated applications include social media, search engine optimization, blogging, Website content management, marketing automation, e-mail, sales productivity, customer relationship management (CRM), analytics and reporting.
- Market Cap: $2,317.8 million
- Total Revenue (LTM): $271.0 million
- Expected Revenue Growth (NTM/LTM): 41.2%
- YTD Price PCT Change: 36.4%
Shopify Inc. (NYSE: SHOP) – $76.38
Online Services
Shopify Inc. (Shopify) provides a Cloud-based, multi-channel commerce platform designed for small and medium-sized businesses. The Company offers subscription solutions and merchant solutions. The Company’s software is used by merchants to run their business across all of their sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts and marketplaces. The Shopify platform provides merchants with a single view of their business and customers across all of their sales channels and enables them to manage products and inventory, process orders and payments, ship orders, build customer relationships and leverage analytics and reporting all from one integrated back office. The Shopify platform includes a mobile-optimized checkout system, which is designed to enable merchants’ consumers to buy products over mobile websites. Its merchants are able to offer their customers the ability to check out by using Apple Pay.
- Market Cap: $6,828.7 billion
- Total Revenue (LTM): $389.3 million
- Expected Revenue Growth (NTM/LTM): 72.8%
- YTD Price PCT Change: 78.2%
Trade Desk Inc. (NASDAQ: TTD) – $35.98
Online Services
The Trade Desk, Inc. is a technology company that provides a self-service platform that enables clients to purchase and manage digital advertising campaigns across various advertising formats, including display, video and social, and on a range of devices, including computers, mobile devices and connected television. Its platform enables a media planner or buyer at an advertising agency to purchase digital media programmatically on various media exchanges and sell-side platforms; acquire and use third-party data to optimize and measure digital advertising campaigns; deploy their, or their client’s, own first-party data in order to optimize campaign efficacy; link digital campaigns to offline sales results or other business objectives; access other services, such as its data management platform and publisher management platform marketplace, and use its user interface and application programming interfaces (APIs) to build their own technology on top of the Company’s platform.
- Market Cap: $1,407.9 million
- Total Revenue (LTM): $202.9 million
- Expected Revenue Growth (NTM/LTM): 43.8%
- YTD Price PCT Change: 30.0%
Wix.Com Ltd. (NASDAQ: WIX) – $70.60
IT Services & Consulting
Wix.com Ltd. (Wix) is a Web development platform enabling businesses and organizations to take businesses, brands and workflow online. The Company provides solutions that business owners can use to operate various aspects of their business online, such as selling goods, taking reservations, and scheduling and confirming appointments. These applications provide Wix registered users a bespoke front-end for customers visiting their website, as well as a back-end management dashboard. The Company has developed these software applications for businesses in specific verticals, including retail and online stores, service providers, hotel and property management, music and restaurants.
- Market Cap: $3,127.4 million
- Total Revenue (LTM): $290.1 million
- Expected Revenue Growth (NTM/LTM): 58.6%
- YTD Price PCT Change: 58.5%
Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.
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