In this article, we will be looking at the 5 best e-commerce stocks to buy in 2021. To see our detailed analysis of e-commerce stocks, you can go directly to see the 16 Best E-Commerce Stocks to Buy in 2021.
5. JD.com, Inc. (NASDAQ: JD)
Number of Hedge Fund Holders: 75
JD.com, Inc. (NASDAQ: JD) is an e-commerce company and retail infrastructure provider in China. The company has two segments: JD Retail, and New Businesses. It ranks 5th on our list of the best e-commerce stocks to buy in 2021.
This May, JD Logistics under JD.com, Inc. (NASDAQ: JD) rose 3% and raised $3.1 billion in the second-largest IPO in Hong Kong so far this year. In the first quarter of 2021, JD.com, Inc. (NASDAQ: JD) had an EPS of $0.38, beating estimates by $0.03. Its revenue was $31.57 billion, up 53.34% year over year and beating estimates by $1.6 billion. The company has a gross profit margin of 7.92% and JD.com, Inc. (NASDAQ: JD) has gained 26.14% in the past year.
By the end of the first quarter of 2021, 75 hedge funds held stakes in JD.com, Inc. (NASDAQ: JD) worth roughly $11.3 billion. This is compared to 89 hedge fund holders in the previous quarter with a total stake value of approximately $14.39 billion.
“Our largest holding as a firm, JD.com, we expect to grow earnings at an annualised rate of 30% over the next five years, implying it will trade on an EV / EBITDA of 7.5x at the end of this period. Is this a growth stock or a value stock? Does anyone care? Do these labels really matter?
For the Asia Fund, with a higher pre-existing allocation to our core FMCG holdings coming into the year, we took advantage of capital market volatility to further concentrate on our highest conviction names. JD.com has been the main destination for our limited reallocations as evidence continues to emerge supporting our thesis that the company has a strong right-to-win in the large and highly fragmented USD1.8th Chinese grocery market. We have also been encouraged by the fact that after years of persistence, the company is beginning to engage with us on ESG issues (we have specifically discussed data protection, climate change and the circular economy). ESG is now being considered at the board level, and specific sustainability reporting should follow in the coming months. Having long displayed a healthy obsession with customer service, we interpret these latest conversations as a sign that JD is beginning to develop a more sophisticated understanding of its impact on all stakeholders.”