A major portion of shopping will continue to be on e-commerce platforms during the upcoming holiday season. Coupled with this, the Black Friday and Cyber Monday sales would also boost the e-commerce momentum. A recent study by Adobe Analytics revealed that in the last couple of weeks, consumers in the United States spent $21.7 billion online, indicating a 21% year-over-year increase…
Adobe further expects the Thanksgiving and Cyber Monday sales to grow 35% to 40% year-over-year this year. The e-commerce companies are gearing up for big times not just in 2020, but for the next few years.
We have seen that few of the large e-commerce players have benefited from this situation and rallied in the recent pandemic. However, a few mid-cap players like MercadoLibre, Inc. (MELI), Chewy, Inc. (CHWY), and Revolve Group, Inc. (RVLV) have massive growth prospects but are still under the radar. Hence, this is the right time to consider these relatively less-focused stocks before they gain significant attention.
MercadoLibre, Inc. (MELI)
MELI is a South-American company that operates online marketplaces dealing in e-commerce and online auctions. Not just the e-commerce space, MELI also has a strong presence in digital payments. Its online payment service MercadoPago is one of the most preferred choices of payments not just on its platform, but also on other platforms.
Last week, The Brazilian central bank allowed MercadoLibre to operate as a financial institution in the country. According to Bloomberg, the company also received close to $74.2 million for increasing Mercado Pago’s working-capital for businesses and entrepreneurs in Brazil. The e-commerce and digital payment boom should do more wonders for MELI in store. Venzee, a tech-based logistics enabler, announced an integration with MELI to allow brands to connect 320 million customers through a single connection.
During the third quarter that ended September 2020, MELI’s revenue soared 148.5% year-over-year to $1.1 million. Its total payment volume for the quarter rose 161.2%, while its gross merchandise volume climbed 117.1%. MELI’s unique active users jumped 92.2% to reach 76.1 million. The company also posted an EPS of $0.94, compared to the loss per share of $2.60 posted in the same period last year.
Analysts expect revenue for the quarter ending December 2020 to be $1.2 billion, indicating a 72.9% increase year-over-year. Meanwhile, EPS for the next quarter is likely to climb 104.5% to $0.05.
On a year-to-date basis, MELI surged 130.5% to end yesterday’s trading session at $1318.09. During the past six months, the stock has soared 65.9%.
How does MELI stack up for the POWR Ratings?
A for Trade Grade
B for Buy & Hold Grade
B for Peer Grade
A for Industry Rank
B for Overall POWR Rating
The stock is also ranked #8 out of 58 stocks in the Internet industry.
Chewy, Inc. (CHWY)
CHWY is an e-commerce platform based in the United States that deals primarily in pet care products. These include food, supplies, medications, toys, accessories, and other health products for dogs, cats, birds, fish, horses, and reptiles. CHWY offers over 60,000 products from over 2,000 brands.
Addressing the current pandemic situation, CHWY announced a new telehealth service called “Connect with a Vet” in October. This service allows…
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