Winning Stock of the 2020 Market Rebound
We’ve certainly seen a “V-Rocket Recovery” this year…
Our America 2.0 trends have accelerated and one stock really stands out to me.
I believe this stock is a triple threat for this market rebound!
And the holiday shopping season is the trigger to help it spring higher.
First, see how Ian and I spot these massive rebounds and help readers ride the wave back up to potentially huge profits. Details here.
Then, check out today’s Market Talk to get the No. 1 rocket rebound stock revealed:
Wayfair Leads the Digital Retail Boom
For today we are diving into the world of the digital retail boom of America 2.0. I’ll be sharing the winning ecommerce trade for the stock market rebound. And Ian Dyer, Senior Investment Analyst at Bold Profits gives his America 2.0 ecommerce retail stocks forecast going into 2021.
According to the latest third quarter retail sales data from the U.S. Commerce Department, nearly $1 in every $5 spent came from online orders. This is huge.
As this chart shows, third quarter U.S. ecommerce sales jumped 37.1% in the third quarter because consumers spent $199 billion online versus $145 billion over the same period last year. This is record-shattering growth — 44% growth.
The second quarter remained on a tear as well. So from a digital perspective, quarter three 2020 marked the second-highest year-over-year growth for any recorded third quarter going back to when agencies started tracking this data back in 2000.
The quarter’s striking performance was also more than double the 18% online sales growth registered in the third quarter of 2019 and nearly 2.5 times the 14.6% rate in the first quarter of 2020. Simply put, U.S. ecommerce’s share of total retail shares skyrocketed in 2020.
In the second quarter, ecommerce’s share of growth in overall retail sales soared 20%. This is the highest online share in record ever. As this chart shows, over the past decade ecommerce share of all retail sales climbed, but 2020 accelerated online sales.
This leap into America 2.0 retail tech is happening and it’s here to stay. Grandview Research forecasts that the global ecommerce market size will double by 2024 and triple by 2027, reaching $27 trillion. Paul and the team has been long-time proponents of online retail stocks since 2018.
This year has been a turning point for ecommerce stocks. We believe investments in this ecommerce realm are a must-have for an America 2.0 portfolio. One ecommerce stocks that is hands down the winner of the ecommerce rebound this year is Wayfair Inc. (NYSE: W).
Over the past year, Wayfair’s stock has leaped 221%, trouncing the performance of major indices. We think of Wayfair as a triple threat. One of our colleagues, Nick Tate, coined that. It’s a megatrend play with a focus on ecommerce, millennials and the housing market.
In all, Wayfair and similar online retailers in a market that’s gaining popularity is a wonderful opportunity. Check out the results of this online retail survey from Statista. They asked their shoppers what they consider a good reason to buy an online item.
63% said they like it for the direct delivery to their homes. 57% like it for cheaper prices. Even you, Bold Profits Nation, have an affinity for ecommerce shopping. The results from my latest Twitter poll shows that 40% of Bold Profits Nation will only be shopping online this year. Nearly 52% said they will be doing a combination of both online and offline shopping.
The ecommerce market is one investment not to be missed.
As we have gone through the holiday season with what is called Cyber Five, which is Thanksgiving through Cyber Monday, that had amazing growth. I think $6 billion more than last year was spent during those five days.
We’ve seen very good numbers since the second quarter, which was the highest quarter of online sales as a percentage of retail sales in history. I think quarter four is going to break that with holiday shopping. In the near term, I see these stocks going even higher.
A lot of them don’t report earnings until February and March and the optimism in the stock market is going to continue through then at least. Near term, I believe these stocks are going to continue to make 52-week highs.
2021 in general is going to be a big turning point where we see the stocks overall for ecommerce to continue to go higher.
We have taken profits on three trades in the past three weeks of more than 50% with an average holding period of 18 days. We caught the rebound in these stocks really well. There were also smaller gains we’ve taken recently.
We still have one trade outstanding on retail, but of course we are going to watch for any dip in these stocks to take advantage of. Like I said, online retail is one of the main areas we are looking at in 2021.
The service is called Rebound Profit Trader. If you are looking for something that tracks not just the rebound we have experience but any further gains in the markets, it’s an options trading service for you.
On behalf of the entire Bold Profits team, we wish you a joyous, peaceful and healthy holiday season as well as a prosperous new year. Until next time, take care.
Editor, Profits Unlimited
I’ve been investing for more than 25 years. I started my career on Wall Street in 1991 as an assistant portfolio manager at Bankers Trust. I quickly advanced to prominent positions at Deutsche Bank and ING, managing multimillion-dollar accounts. In 2006, the owners of a $6 billion firm named Kinetics Asset Management recruited me to manage their hedge fund.