The global e-commerce market is expected to grow at a CAGR of 14.7% between 2020 and 2027. Last year was especially bountiful for e-commerce companies due to the spread of the coronavirus pandemic and the resulting societal lockdowns. Consumers took their shopping online for health and safety reasons, helping e-commerce companies thrive.
Since global coronavirus infection rates are continuing to increase and the pace of vaccine rollouts has been slower than expected, analysts expect the E-commerce industry to remain on solid footing this year. Analysts have noted that smaller e-commerce companies have been big winners over the past year. This may be because smaller companies are more agile and quicker to adopt creative solutions as consumer behavior changes.
Small-cap e-commerce companies CarGurus, Inc. (CARG – Get Rating), 1-800-FLOWERS.COM, Inc. (FLWS – Get Rating), and iMedia Brands, Inc. (IMBI – Get Rating) have indeed recorded stellar stock price gains in the recent past. These companies are on a strong trajectory for growth. So, we think t’s worth adding these stocks to your portfolio.
CARG operates an online platform for the sale of new and used cars. The platform connects buyers with sellers using third-party validation. CARG’s stock has gained 50.4% over the past three months.
CARG recently completed the acquisition of CarOffer. The acquisition will add wholesale vehicle acquisition and sale capabilities to the company. CARG also recently launched Finance in Advance, which enables shoppers’ pre-qualification for financing while buying a car.
For the quarter ended September 30, 2020, CARG saw a 17% increase in its advertising revenue versus the same period last year. The company had no debt as of September 2020.
CARG is expected to see a revenue growth of 18.9% in 2021. Its EPS is estimated to grow 6.9% in 2021 and at a rate of 27.4% per annum over the next five years.
CARG’s strong fundamentals are reflected in its POWR Ratings. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
The stock has an overall rating of B, which equates to Buy in our proprietary ratings system. It has a grade of A for Quality. In the 65-stock Internet industry, it is ranked #2.
In total, we rate CARG on eight different levels. Beyond what we stated above, we have also given CARG grades for Stability, Sentiment, Momentum, Growth, and Value. Get all the CARG ratings here.
FLWS operates an online platform for the sale of flowers and related products. The company offers fresh-cut flowers, floral and fruit arrangements, gift baskets, cookies, and more. FLWS’s stock price has increased 100.3% over the past year.
FLWS has launched a new platform for corporate gifting, which integrates the offerings of its entire family of brands. This dedicated website for corporate gifting has the potential to become a market leader in its niche.
For the quarter ended December 31, 2020, the company reported an…
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