4 Solid Stocks to Buy as E-Commerce Sales Roar Past $1 Trillion

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E-commerce has been propelling retail sales for quite some time now. The pandemic saw millions shopping online, which further gave a boost to online sales. The trend has continued since then and 2022 turned out to be a landmark year for e-commerce, with online sales crossing the $1 trillion mark for the first time.

The mark was achieved due to solid e-commerce sales during the holiday season. Given this scenario, stocks with a strong online presence, Casey’s General Stores, Inc. CASY, Arhaus, Inc. ARHS, Conagra Brands, Inc. CAG and Campbell Soup Company CPB are expected to benefit in the near term.

Online Sales Hit New High

According to ComScore’s annual State of Digital Commerce report, online sales totaled $1.09 trillion in 2022, increasing 11% from $904.3 billion in 2021. The solid jump in online sales was driven by a wide range of categories. Grocery (including baby and pet supplies) accounted for $219 billion, followed by $175 billion in online sales of fashion and accessories.

Online computers and peripherals sales totaled $117.7 billion. Among the categories with the highest growth were sales of event tickets, which rose 75%. Digital content grew 60%, while apparel and accessories climbed 37%.

The report also mentions that online sales via mobile phones accounted for $127.5 billion in the fourth quarter, increasing 38% from the previous quarter. Desktop spending for the fourth quarter totaled $204.7 billion.

Overall online sales increased 18% year over year in the fourth quarter.

Overall retail sales got a solid boost during the holiday season, with e-commerce playing a significant role once again. Digital sales crossed $200 billion during the 2022 holiday period, increasing 20% year over year.

Online shopping via mobile devices totaled $92.6 billion, or almost 46% of the total. Early marketing initiatives by retailers pushed up November’s share of overall quarterly digital spending from 38% to 44%.

Grocery remains the top category when it comes to online spending. Online grocery spending has increased by 333% in just four years from $14.8 billion in the fourth quarter of 2018 to $64 billion in the fourth quarter of 2022.

Story continues

A separate report from Salesforce, Inc. (CRM) showed that online sales for the holiday season surpassed $1.14 trillion globally. The research also notes that in November and December, Internet sales in the United States reached $270 billion, demonstrating that despite high commodity prices, Americans were able to spend freely throughout the Christmas season.

E-commerce has been significantly boosting retail sales since the COVID-19 outbreak. People were forced to shop online as they wanted to maintain social distancing from fears of contracting the virus. Since then, the trend has continued as people finally realized the ease and convenience of shopping online.

Our Choices

Given this scenario, it would be wise to invest in these four stocks with a strong online presence. Each of the stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Casey’s General Stores, Inc. operates convenience stores under the Casey’s and Casey’s General Store names in 16 Midwestern states, mainly Iowa, Missouri and Illinois. CASY also operates two stores under the name “Tobacco City”, selling primarily tobacco and nicotine products, one liquor store, and one grocery store.

Casey’s General Stores’ expected earnings growth rate for the current year is 18.4%. The Zacks Consensus Estimate for current-year earnings has improved 3.3% over the past 60 days. CASY currently has a Zacks Rank #2.

Arhaus, Inc. is a lifestyle brand and omni-channel retailer of premium home furnishings. ARHS offers an assortment of heirloom quality products. Arhaus Inc. is based in Boston Heights, OH.

Arhaus Inc.’s expected earnings growth rate for the current year is 26.1%. The Zacks Consensus Estimate for current-year earnings has improved 3.6% over the past 60 days. ARHS presently sports a Zacks Rank #1.

Conagra Brands, Inc. is one of the leading branded food companies of North America. CAG offers premium edible products, with a refined focus on innovation. Conagra Brands maintains a highly dynamic product portfolio and incorporates alterations within it as per the preference pattern of the end-users.

Conagra Brands’ expected earnings growth rate for the current year is 12.7%. The Zacks Consensus Estimate for current-year earnings has improved 9% over the past 60 days. CAG presently sports a Zacks Rank #1.

Campbell Soup Company together with its subsidiaries, is a worldwide manufacturer and marketer of high-quality, branded convenience food products. CPB’s brands are sold in approximately 120 countries, and its principal geographies include North America, France, Germany, Belgium and Australia.

Campbell Soup Company’s expected earnings growth rate for the current year is 4.9%. The Zacks Consensus Estimate for current-year earnings has improved 3.1% over the past 60 days. CPB presently has a Zacks Rank #2.

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Conagra Brands (CAG) : Free Stock Analysis Report

Campbell Soup Company (CPB) : Free Stock Analysis Report

Casey’s General Stores, Inc. (CASY) : Free Stock Analysis Report

Arhaus, Inc. (ARHS) : Free Stock Analysis Report

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