With the change in trend, it seems that now someone is always waiting for a package to arrive, letters are no longer so important. What seemed to be a temporary boost to online commerce, due to the arrival of the pandemic and with it the need to go out as little as possible, has been maintained and allows companies dedicated to online commerce to surprise the market with each new delivery of results. AND Analysts trust the development of major listed companies in the sector (Amazon, Alibaba, Pinduduo and Zalando)because not only do they have positive prospects for each of these companies, but in all cases They recommend buying their shares, according to expert consensus collected by FactSet.
The most valuable of this group of companies dedicated to online sales is neither more nor less than the American one. Amazonone of the leading companies in the sector. The company that started in Jeff Bezos’ garage is no longer just an online bookstore, 30 years later the company is not only dedicated to retail, but has diversified its activities with platforms of cloud services and streaming. The group of analysis houses which collects the tool believes that this giant of retail has not yet found a limit to its stock price, on the contrary, it hopes that in the coming months travel up to 19% moresince they estimate that a share will be worth up to 221 euros, while the company is currently trading around 185 dollars per share.
Although it withdrew its stock price in September due to investors’ fears of a recession in the US economy, Freedom 24 defends that its “domination of online retail, its growth in advertising investments , its leadership in cloud computing and its commitment to innovation” makes the company “well positioned for sustained long-term growthIn addition, the entity believes that Amazon’s “proactive approach to expanding its market presence and improving the customer experience suggests a sustainable business model” over time.
In the case of Zalandothe most important retailer in the entire European market, has a potential of 17%, while it manages to revalue 36% per year and is the most optimistic company in the sector. retail within the main European benchmark, the Stoxx 600. From Barclays they explain that the company is “one of our main options for 2024 and we are starting to see how the investment thesis comes to fruition”, and that ” the fall-winter season is approaching a good start, which supports both sales and gross margin After passing “the worst of the change”. online/offline“the situation of the European consumer is improving and Zalando has been able to generate sales growth and margin expansion,” they add.
But This company does not only stand out on the trading floorbut at a fundamental level, it has particularly good forecasts for its earnings over the next three years. The FactSet expert group predicts that Company profits will increase up to 150% morefrom 83 million euros to 207.6 million euros in this concept, approaching the maximum levels of the company. However, next year it is expected to reach 283 million euros, managing to surpass its highest historical profit marked in 2021: at that time Zalando had obtained 235 million euros in this concept.
Asian companies
On the other hand, the two Chinese companies have lower caliber potential for the months to come. Alibaba It has even exhausted its potential, placing itself 7% above after an increase of 49% on the stock market. But these companies shine compared to their peers in that they trade cheaper relative to the PER (number of times the earnings per share are contained in the market price of the share). Especially the parent company AliExpress, known in stock gossip for being one of the biggest debuts in the history of Wall Street, this 2024 is trading at 12.4 times, 47% below the figure obtained last year, but by 2025 it will reach 10.4 times. .
Instead, Pinduduothe parent company of Temu, managed to recover and exceed 4% on the stock market during the year, after entering negative territory in August and contracting by 43%. The stagnation of the Asian country’s economy has led to capital flight in its stock markets which has affected the price of this company, but the announcement of a never before seen stimulus plan by the People’s Bank of China has once again more attractive to investors. this market. Today, the company is once again approaching its highest levels of the year, and analysts estimate that Pinduduo can still rise by up to 9%.
Pinduduo trades at a PER of 12.6 times based on forecast earnings for 2025, compared to 14.24 times estimated by analysts for 2024. But a significant rise in earnings is also expected for the Temu owner. free cash flow (free cash flow) by 50%, compared to the company’s last offering in 2023 of $163.3 billion. Analysts expect a 50% increase from that figure.up to $245.717 million.
