The Coronavirus economy has created a great disparity between winners and losers. I have focused on many of the unique stock winners in other recent articles about these leading groups: Streaming Stocks, Pharma, Discount Retailers, Fitness @ Home, and finally Work @ Home tech stocks.

Now I want to go into another industry which is a clear winner. That being ecommerce stocks beyond the obvious choice of Amazon which just hit a 52 week high. These stocks have similarly attractive growth trends while having potentially more upside in the share price.

Here are those 4 best ecommerce stocks: Shopify (SHOP), eBay (EBAY), Chewy (CHWY) and MercadoLibre (MELI).

Let’s explore the reasons why these shares are so attractive at this time.

Shopify (SHOP)

It is becoming quite clear that businesses lacking a web-based store will lose critically important market share in the months to come.  SHOP makes it easy for merchants to establish a presence on the web.  And having an online presence has never been more important considering the ongoing pandemic that has forced the masses into their homes.

SHOP serves merchants of varying sizes, providing online storefronts, payment methods, order fulfillment and even shipping.  Do not be intimidated by the fact that SHOP is approaching its 52-week high of $593.89.  Shop has more than a million customers, a sales spike of 47% in the prior year and room to grow.  Though SHOP is not profitable based on GAAP measures, that might change in the upcoming year as countless businesses have transitioned to the online realm with SHOP’s assistance during the Covid-19 outbreak.

Let me put it this way. There is good reason that Shopify shares have rallied 48% this year and a whopping 676% in the past 3 years. True, past performance is not a guarantee of future results. But it does give you a sense of the growth potential which is showing no signs of slowing.

eBay (EBAY)

Rewind time back to the late 90s and it appeared as though EBAY would be the ecommerce stalwart while the likes of Amazon would remain in the red for years, if not decades to come.  My, oh my, how times have changed.  EBAY stock has stagnated since the summer of 2015, trading between $23 and $43.  However, EBAY has considerable momentum stemming from the recent society-wide transition away from brick-and-mortar retail to online commerce.

EBAY currently has a Zacks Rank of #2, meaning “Buy.”  That matches with the POWR Rating of B (Buy) on StockNews.com.

Part of EBAY’s recent rebound is attributable to its focus on shopping based on browsing history.  EBAY plucked Walmart’s former COO, Jamie Iannone, to serve as its CEO.  Iannone is likely to succeed in the personalization of EBAY’s website, helping the online merchant retain and attract that many more customers in this stay-at-home era.

Chewy (CHWY)

The masses have pared back their spending on luxuries while ramping up spending on necessities during the coronavirus outbreak.  Pet food, toys and other items for our furry friends qualify as necessities. (And yes, I can tell you first hand that Chewy is our website of choice for all the goodies our 3 dogs need).

CHWY stands to benefit from the transition away from brick-and-mortar stores to online shopping.  The company has minimal exposure to China, ensuring a steady supply chain regardless of geopolitical developments.  With a Zacks Rank of #2, CHWY is likely to soar past its 52-week high of $47.55 in the months to come.

MercadoLibre (MELI)

People across the world, including those who live in Latin America, are flocking to the internet to buy and sell goods during the society-wide shut down of most brick-and-mortar facilities.  MELI is a leading e-commerce operator in South America, providing a popular online marketplace along with additional services such as electronic payments.

This e-commerce superstar started out as a web-based auction site, subsequently transitioning to e-commerce order fulfillment and related tools in due time.  The fact that MELI provides a wide array of locations that take cash bodes well for the company as upwards of three-quarters of Latin America’s population lacks a bank account.  Look for MELI to approach TipRanks’ average investor price target of $716.18 before the year’s end. That is ample upside from its current perch under $600.

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SHOP shares closed at $590.39 on Friday, up $63.96 (+12.15%). Year-to-date, SHOP has gained 48.50%, versus a -10.42% rise in the benchmark S&P 500 index during the same period.

About the Author: Steve Reitmeister

Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...

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