The rapid spread of e-commerce platforms is reshaping the global business landscape. With consumer behavior shifting to online shopping, companies have invested heavily in digital infrastructure, seamless payment options, and fast delivery networks.
Given the company’s strong prospects, investors may consider watching e-commerce stocks PDD Holdings Inc.PDD), Sea Limited (SE), and Etsy, Inc.ETSY) to them watch list.
Such as Census Bureau of the Department of Commerce reportsUS e-commerce sales for the third quarter increased 2.6% year-on-year, reaching $300.10 billion. In 2024, people Global online shoppers total 2.71 billionand is expected to increase in 2025 to 2.77 billion consumers.
The competitive landscape has led to new initiatives, including Personalized plans powered by AI and the introduction of omnichannel models. Major platforms use data analytics to improve user experience and improve operational efficiency. This has allowed smaller retailers to gain visibility, increasing their sales and market presence.
The global e-commerce market is expected to reach $6.45 trillion by 2029, showing a CAGR of 9.5%. Also, with the adoption of digital wallets and seamless shipping options, e-commerce platforms are poised to dominate retail sales.
With these positive trends in mind, let’s examine the sources of three e-commerce stocks.
PDD Holdings, Inc.PDD)
Based in Dublin, Ireland, PDD is an international business owned and operated company. It operates Pinduoduo, an e-commerce platform that offers products such as plants, clothing, shoes, bags, mother and baby products, and food and beverages, and also operates Temu, a store in the internet.
In terms of trailing 12-month leverage ratio, PDD’s 29.10% is 565.1% higher than the industry average of 4.55%. Similarly, the 49.15% trailing-12-month ROCE is 350.7% higher than the industry average of 10.90%. Also, its trailing-12-month ROTA of 23.19% compares to an industry average of 3.89%.
For the fiscal third quarter ending September 30, 2024, PDD revenue increased 44.3% year-over-year to $14.16 billion. Its non-GAAP operating profit grew 47.7% from last year’s profit to $3.81 billion. A company’s non-GAAP net income may differ from non-GAAP cause per share came in at $3.91 billion and $0.66, up 61.3% and 60.3% from the previous quarter, respectively.
Traffic expects PDD revenue for the fourth quarter of the fiscal year (ending in December 2024) to increase 29.7% year over year to $16.02 billion. Furthermore, its EPS estimate of $2.67 for the same period represents 11.2% year-over-year growth. Additionally, it exceeded consensus EPS estimates in three out of four quarters, which is promising.
PDD stock has risen 3% over the past three months to close the last trading session at $98.80.
The PDD situation is evident in it POWR quality. This product is rated A for Quality and B for Durability. The POWR rating is calculated by considering 118 different factors, each of which is rated the best.
Of the 43 stocks in the A score China company, it is #26. Click here to see additional PDD ratings (Growth, Value, Stability, and Impact).
High seas (SE)
Based in Singapore, SE is involved in digital entertainment, e-commerce, and digital financial services businesses. The company offers the Garena digital entertainment platform to access online games, eSports services, and other entertainment content, as well as Shopee’s e-commerce store for cash payments and logistics and merchant services.
The stock’s leverage ratio of 0.78x is 58.5% higher than the industry average of 0.49x.
In the fiscal quarter ending September 30, 2024, SE’s revenue rose 30.8% year over year, to $4.33 billion. Its gross profit reached $82.89 million, increasing 29.1% annually. Operating income came in at $202.42 million compared to a previous net loss of $127.74 million.
Additionally, the company’s net income stood at $153.32 million compared to last year’s quarterly loss of $143.98, while its EPS came in at $0.24 with a loss of $0.26 per share last year. Also, total adjusted EBITDA rose significantly from the previous quarter to $521.34 million.
Analysts expect SE’s revenue for the third quarter ended October 31, 2024, to increase 27.2% year-on-year to $4.60 billion, while EPS for the same period is expected to grow by good from quarter to $0.70. The company has exceeded Street revenue estimates in each of the following four quarters, which is impressive.
The stock has gained 208.8% over the past year and 185.7% year-to-date to close the last trading session at $115.71.
The SE’s bright prospects are reflected in its POWR rating. The stock has an overall B rating, which translates to a Buy in our rating system.
It also has an A rating for taste and impact and a B for time and quality. In the A level Internet industry, it ranks #19 out of 52 stocks. Click here See SE ratings for Value and Stability.
Etsy Company, Inc.ETSY)
ETSY operates a two-way online marketplace that connects buyers and sellers around the world. Its main marketplace is Etsy.com, which connects artisans and entrepreneurs with a variety of customers.
ETSY’s trailing-12-month net margin and ROTA of 9.17% and 10.51% are 111.1% and 170.5% higher than their industry averages of 4.35% and 3.89%. Similarly, the 12-month earnings multiple of 1.14x compares favorably to the industry average of 0.99x.
ETSY’s revenue for the third quarter (ended September 30, 2024) increased 4.1% year over year to $662.41 million. It reported a net profit of $476.77 million, up 6.5% year over year. The company’s net income was $57.37 million and $0.45 per share. Also, its adjusted EBITDA increased slightly over the year, reaching $183.59 million.
The consensus investment estimate of $862.71 for the fourth quarter (ending December 2024) represents a 2.4% year-over-year increase. The consensus EPS estimate of $1.51 for the current quarter indicates a 24.3% year-over-year growth rate. The company has an incredible history; it exceeded the revenue estimates for each of the last four quarters.
Over the past month, the stock has risen 11.7%, closing the last trading session at $54.31.
ETSY’s points are reflected in its POWR rating. This product is rated A for Quality and B for Durability. It is ranked #33 out of 52 stocks on the Internet company.
In addition to the above, we also recommend ETSY for taste, value, stability, and influence. Access all ETSY posts Here.
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PDD shares were trading at $98.80 per share on Thursday afternoon, down $0.51 (-0.51%). Year-to-date, PDD is down -32.47%, outpacing the 27.18% rise in the S&P 500 index over the same period.
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