3 Ecommerce Stocks to Consider for Long-Term BuysWhile there's certainly a chance that stocks continue to face selling pressure in the coming months, it's hard to bet against the long-term runway for the eCommerce industry.

BySean Sechler

This story originally appeared onMarketBeat

Depositphotos.com contributor/Depositphotos.com - MarketBeat

这三个eCommerce Stocks Are Down But Not Out

During the pandemic, it seemed as though eCommerce stocks could do no wrong. These companies saw their share prices soar as investors looked to capitalize on consumers spending government stimulus checks and shopping from home. Fast forward to today and it's quite evident that many of these stocks got ahead of themselves in terms of their valuations. The market is rapidly re-pricing shares, which has led to some truly dramatic declines in quality eCommerce companies.
While there's certainly a chance that stocks continue to face selling pressure in the coming months, it's hard to bet against the long-term runway for the eCommerce industry. Shopping online has become the new normal, and as more people gain access to the internet around the world the top companies in online retail should be nicely positioned to reward shareholders. If you are interested in adding shares of the top eCommerce stocks and can accept the possibility of additional volatility in the near term, this article is for you. 

Keep reading on as we highlight 3 eCommerce stocks to consider for long-term buys.

Amazon (NASDAQ: AMZN)

No list of eCommerce stocks to consider for the long-term would be complete without Amazon, the biggest and most successful eCommerce company on the planet. While Amazon shares are not cheap by any means, quality always comes with a price. The company's massive logistics network, cost advantages, and an enormous network of buyers and sellers on its marketplace should keep the company at the top of the eCommerce industry for many years to come. Shares have been weak over the last few quarters due to concerns about inflation, supply chain issues, and a shortage of workers, but it's important to remember that these are only temporary factors.
In addition to eCommerce, adding shares ofAmazonalso means adding exposure to the top name in enterprise cloud, Amazon Web Services. This business segment alone grew by 40% year-over-year in 2021, adding $62 billion in revenue to the company's top line. In total, Amazon's net sales for 2021 increased 22% to $469.8 billion, a staggering number that confirms this eCommerce powerhouse is still growing at a rapid pace despite its size. Finally, the fact that Amazon is raising its prices on Prime memberships in the U.S. to $139 from $119 is yet another reason to consider adding shares at this time. Amazon shares could certainly continue dipping in the coming weeks, but any significant weakness might end up being the perfect spot to add this fantastic company for the long term.

Shopify (NASDAQ: SHOP)

Shopify无疑是最强的一个tocks in the market during the pandemic, but sentiment has changed quickly for growth companies and shares have plunged over 54% year-to-date. The selloff is likely getting a bit overdone at this time, and investors that are looking at adding top names in the eCommerce industry should be very intrigued by Shopify even with the shocking decline. Shopify has developed a cloud-based commerce platform for small and medium-sized businesses which provides customers with the tools needed to start, grow, market, and manage a retail business.
While it's true that some consumers are heading back to brick-and-mortar stores following the pandemic, Shopify is still delivering astounding growth quarter after quarter. Recently, the Canada-based company reported Q4 total revenue of $1.38 billion, up 41% year-over-year, and saw its Q4 Gross Merchandise Volume hit $54.1 billion, up 31% year-over-year. Investors should keep in mind that the company has developed a very strong customer base during the pandemic that should lead to continued growth, while the company is also investing heavily in building out its own fulfillment network that could really take the company to the next level. With shares currently trading at a 27.37 P/E ratio, it might be time to addShopifyto your long-term shopping list.

Target (NYSE: TGT)

Target investors have been heading for the exit doors in droves since November, which has shares getting more and more attractive with every downtick. While it's hard to determine when the selling pressure will subside, one thing's for certain – this is a quality business with a growing eCommerce offering that investors should not overlook. The company operates over 1,900 Target, SuperTarget, and CityTarget general merchandise stores across the United States and has developed a very strong brand over the years.Targethas been renovating many of its brick-and-mortar locations and expanding its omnichannel presence, which are both moves that should excite long-term investors.
eCommerce success is all about how quickly you can fulfill customer orders, which is why logistics is so important. Target's 1900 stores are located within 10 miles of the majority of U.S. consumers, so the company is in a great position to grow its digital sales over the years. There aren't many retailers out there that can match Target's scale, and with shares trading at a reasonable 14.45 P/E ratio at this time adding shares of this retailer for the long-term could be a masterful move.

Wavy Line

Editor's Pick

Related Topics

Business News

Netflix is Hiring an AI-Focused Role—and the Starting Salary is up to $900,000

The streaming giant is looking for a leader in its machine learning department.

Science & Technology

This Is the New ChatGPT Trend That Will Enhance Your Business

ChatGPT plugins are becoming the new cool trend among entrepreneurs to enhance their businesses and engage more customers. Here are some insights into how they're impacting business enterprises, along with some potential risks that may accompany the benefits.

Living

How to Start a 'Million Dollar' Morning Routine

Restructure your morning with a few simple steps that may help to amplify your energy.

Business News

McDonald's Is Launching a Spinoff Restaurant Chain Based on a Beloved, Blast-From-the-Past Mascot

The company saw a lot of success with another former mascot, Grimace, in June.