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The Zacks Analyst Blog Highlights: JD.com, MercadoLibre, Alibaba, Wayfair and Carvana

Zacks Equity Research

For Immediate Release

Chicago, IL – August 3, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: JD.com, Inc. JD, MercadoLibre, Inc. MELI, Alibaba Group Holding Limited BABA, Wayfair Inc. W and Carvana Co. CVNA.

Here are highlights from Tuesday’s Analyst Blog:

5 E-Commerce Stocks Set to Beat Q2 Earnings

The coronavirus hit-world emerged as a boon for the online retail market during second-quarter 2020.

The market has been gaining from the scenario with seamless and fast delivery of orders becoming an integral part of the new normal as people refrain from stepping outside their homes on fears of contracting the deadly virus.Moreover, door-to-door delivery of items such as groceries, healthcare goods and other essentials during the ongoing pandemic has been driving online orders.

Further, solid momentum across online grocery shopping has been fueling online retail sales across several parts of the world.

This above-mentioned scenario is quite evident from the stellar performance delivered by the e-commerce giant Amazon in the quarter under review. Notably, the company has been witnessing a flurry of orders since the onset of the ongoing pandemic. Notably, Amazon’s online grocery sales tripled year over year in the second quarter. Further, the company’s strong overall online store sales are testament to the fact that it capitalized well on surging online shopping demand worldwide.

Moreover, the company’s strong sales outlook for third-quarter 2020 indicates that the e-commerce space is likely to sustain momentum courtesy of coronavirus-induced restrictions.

eBay, another major e-commerce player, also delivered robust second-quarter performance on the back of its solid Marketplace growth and accelerating gross merchandise volume. Notably, the company’s positive outlook for the current quarter reflects the fact that it anticipates to continue benefiting from solid growth in the e-commerce space owing to shelter-in-place protocol. Notably, eBay has raised full-year guidance, which remains encouraging.

Hence, we believe the growing proliferation of ultrafast delivery services and rapid adoption of online payment applications in this conductive scenario are likely to have benefited the e-commerce stocks during the second quarter.

Moreover, coronavirus induced health risks, which are a major concern globally, are strongly aiding shifts in the consumer spending pattern to e-commerce. This is expected to have helped the online retail companies in acquiring new customers during the quarter under review.

How to Make the Right Pick?

With the presence of several industry participants, finding the right e-commerce stocks with the potential to beat on earnings can be daunting. Our proprietary methodology, however, makes this task fairly simple.

You could narrow down your choices by looking at the stocks that have the perfect combination of the two key elements: a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP is our proprietary methodology for determining the stocks that have the maximum chances of beating estimates at their next earnings announcement. It is the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.

Our research shows that for stocks with this apt mix of ingredients, the odds of a positive earnings surprise are as high as 70%.

Best Bets

JD.com has an Earnings ESP of +13.79% and a Zacks Rank #1 currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for second-quarter 2020 earnings has been revised upward by 2.6% to 39 cents per share over the past 30 days.

MercadoLibre is scheduled to report second-quarter 2020 results on Aug 6. The company has an Earnings ESP of +93.88% and a Zacks Rank #2 currently. The Zacks Consensus Estimate for earnings has been revised upward from break-even point to 10 cents per share over the past 30 days.

Alibaba has an Earnings ESP of +5.53% and a Zacks Rank #3 currently. The Zacks Consensus Estimate for first-quarter fiscal 2021 earnings has been revised upward by 6% to $1.95 per share over the past 30 days.

Wayfair is slated to report second-quarter 2020 results on Aug 5. The company has an Earnings ESP of +21.40% and a Zacks Rank #3 currently. The Zacks Consensus Estimate for earnings has been revised upward by 2.3% to 89 cents per share over the past 30 days.

Carvana is scheduled to report second-quarter 2020 results on Aug 5. The company has an Earnings ESP of +12.41% and a Zacks Rank #3 currently. The Zacks Consensus Estimate for loss has narrowed from 83 cents per share to 79 cents per share over the past 30 days.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.


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JD.com, Inc. (JD) : Free Stock Analysis Report
 
Wayfair Inc. (W) : Free Stock Analysis Report
 
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
 
MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
 
Carvana Co. (CVNA) : Free Stock Analysis Report
 
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