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A few hours before composing this, I received a notification about packages at my door. It’s a recurring theme at our house and likely in yours as well. Increasingly, Americans are throwing in the towel on brick-and-mortar retail and ordering everything online. And as an investor, that makes it worth considering what companies might be hidden gem e-commerce stocks.
The task is harder than you might think. Finding e-commerce companies isn’t hard. Nearly every company today is e-commerce. They have to be. But picking out the under-the-radar, publicly traded companies takes a little work. Fortunately, that’s what stock screeners are for.
E-commerce stocks will continue to be big winners not only in 2024 but for the foreseeable future. But surprisingly, that hasn’t meant much to Amazon (NASDAQ:AMZN) stock. That’s because the company already has a 1.75 trillion market cap. The company is becoming a venerable blue-chip stock.
That’s where a little digging can help you discover big profits. So let’s take a look at three hidden gem e-commerce stocks for you to consider.
Birkenstock (BIRK)
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You may not consider Birkenstock (NYSE:BIRK) to be a hidden gem among e-commerce stocks. But the digitally native company just arrived on the publicly traded market in October 2023. That means now is the time that many investors are trying to make heads or tails of the company’s valuation.
Here’s what we know so far. Birkenstock posted mixed earnings in January with the miss being on the bottom line. The company also lowered its earnings forecast for the rest of the year citing margin pressures. However, it should be said that Birkenstock is still forecasting a year-over-year increase in earnings.
BIRK stock trades at around 39x forward earnings. That’s a significant premium from the broader retail sector. But if you compare a pair of the company’s iconic sandals to yoga pants from Lululemon (NASDAQ:LULU) which trades at 36x forward earnings, it may be fairly valued.
But an investment in BIRK stock is an investment in the future. Many people thought Lululemon would be able to hold on to its premium valuation. Yet investors have been rewarded with a gain of over 2,700% since the stock went public in 2007.
1-800-Flowers.com (FLWS)
Source: shutterstock.com/IuriiKohut
1-800-Flowers.com (NASDAQ:FLWS) is an easy choice as one of the hidden gem e-commerce stocks. I’m writing this the day before Valentine’s Day. I imagine the company’s been generating significant revenue the past several weeks.
The reason for owning FLWS stock is because the company has a stable of premium brands that runs the gamut from flowers to gourmet snacks and foods. In fact, the company generates 48% of its revenue from gourmet foods and gift baskets. It’s a market leader in this $20 billion category.
The risk with the stock comes from the competition and seasonality. There is no shortage of companies with similar offerings. And the company makes the majority of its revenue – not to mention profitable earnings – in the quarter just ended.
Still, 1-800-FLOWERS.COM expects earnings growth of over 78% in the next 12 months. And the analysts that cover FLWS stock have a consensus price target of $12.88 which is 41% higher than the
