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According to a reputable marketing research firm e-marketer, e-commerce growth is expected to accelerate in the U.S. over the next few years, with sales in this sector expected to increase 10.5% this year from 9.3% in 2023 to 10.8% and 11% in 2025. The company expects it to increase. In 2026 it will be 11.3% and in 2027 it will be 11.3%.
This is certainly a very good thing for US e-commerce companies and e-commerce stock owners. Additionally, in countries where e-commerce is less established, e-commerce sales are probably growing much faster than in the United States.
Here are three top e-commerce stocks to buy for investors looking to capitalize on the sector's accelerating growth and generate huge profits.
Giga cloud technology (GCT)
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US base giga cloud (NASDAQ:GCT) facilitates transactions between e-commerce retailers and suppliers, handles “logistics and warehousing” for those e-commerce companies, and provides information about suppliers to e-commerce companies.
The company has been expanding very rapidly, with net income jumping from just $700,000 in Q3 2022 to $24.2 million in Q3. Most importantly, the company's revenue increased by 39% year-on-year in the third quarter. $178 million.
In November, Nasdaq.com We've identified GCT as one of the “best stocks to buy.” Similarly, Investors Business Daily gives GCT stock its highest overall rating of 99. Also worth noting is that this stock has a Relative Strength Rating of up to 99. This shows that it has performed very well relative to the market over the past year. Finally, the stock has a B+ Accumulation/Distribution Rating, indicating that institutional investors have been buying the stock at a fairly high rate over the past 13 weeks.
MercadoLibre (Meri)
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mercadolibre (NASDAQ:Meri) is a Latin American e-commerce giant with operations in 18 markets in the region.
The company's e-commerce business is growing extremely rapidly, with total transaction value reaching $11.4 billion in the third quarter, an increase of 59% year-over-year. In addition, operating profit increased 2.3 times year-on-year to $685 million.
Also importantly, MELI is increasing its delivery speed, delivering 80% of orders within one day in the third quarter, an increase of 22 percent compared to the third quarter of 2022. Equivalent to a point improvement. The company's strong logistics operations should help it stay ahead of its competitors. .
As mentioned in a previous column, all of the company's payment businesses are also performing well, with “payments increasing 45% year-on-year to $47.25 million,'' while “the credit card business is on track.'' In the third quarter, we issued a total of 1 million credit cards. ”
MELI stock has an attractive PEG ratio of 1.1x, which shows that despite the high price-to-earnings ratio of 47x, valuation has not actually increased.
The company's strong growth and bright future prospects make it one of the best e-commerce stocks to buy.
Amazon.com (AMZN)
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As the runaway leader in the US e-commerce field, Amazon (NASDAQ:AMZN) is doing well, benefiting from the accelerated growth in e-commerce that I discussed at the beginning of this column.
In fact, the company is likely already benefiting from that trend, with North American e-commerce revenue increasing significantly quarter over quarter to $105.5 billion, up 13% year over year. Analysts' average estimate was $102.9 billion.
The company has meaningfully improved its e-commerce business by sourcing more products from warehouses closer to the consumers who order them. This change allows Forms to reduce delivery times and costs.
Meanwhile, as I've noted in past columns, the conglomerate's cloud business has benefited greatly from the AI boom.
On the date of publication, Larry Ramer did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing Guidelines.
Larry Lamar has been researching and writing about U.S. stocks for 15 years. He is employed by The Fly and the Globe, Israel's largest business newspaper. Larry started writing a column for InvestorPlace in 2015. Some of his highly successful contrarian stocks include SMCI, INTC, and MGM. You can reach him at @larryramer on Stocktwits.
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