(C) Reuters. 3 E-Commerce Stocks Wall Street Predicts Will Rally by More Than 40%
E-commerce sales surged amid the COVID-19 pandemic last year, compelling most brick-and-mortar companies to establish an online presence. The e-commerce industry is expected to generate sustainable growth this year, with many organizations and individuals continuing with remote arrangements. Thus, Wall Street analysts predict e-commerce stocks Alibaba (NYSE:BABA), JD.com (NASDAQ:JD), and Stamps.com (NASDAQ:STMP) will rally in the coming months. So, let’s evaluate these names.E-commerce businesses thrived last year as consumer behavior changed drastically in response to lockdowns and social distancing restrictions. Most brick-and-mortar businesses adapted to changing shopping preferences by launching online platforms to facilitate remote purchases. The benefits of online shopping contributed to high e-commerce sales in the first quarter ended March 31. E-commerce sales in the United States increased 39% year-over-year to $196.66 billion in the quarter. Online sales accounted for 19.5% of total retail sales in the most recent quarter, up 360 basis points from the same period last year.
While brick-and-mortar sales have been accelerating lately on pent-up demand for physical shopping, e-commerce shopping is likely to stick as a habit as people gradually adjust to partially remote lifestyles. Statista projects U.S. e-commerce sales will witness a steady upward trajectory over the next four years to hit $563.4 billion by 2025.
Given this backdrop, Wall Street analysts expect the e-commerce industry to generate sustainable growth in 2021, driving up the share prices of established companies Alibaba Group Holding Limited (BABA), JD.com, Inc. (JD), Stamps.com Inc . (STMP) by more than 40%.
3 E-Commerce Stocks Wall Street Predicts Will Rally by More Than 40%
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