Ten E-Commerce Investments to Purchase Amid $1.9 Trillion Federal Stimulus and COVID-19 Vaccine Rollout

Ten e-commerce investments to purchase amid the $1.9 trillion federal stimulus, expanding COVID-19 vaccinations and economic reopening also offer dividends.

The ten e-commerce investments to purchase are dominated by dividend-paying real estate investment trusts (REITs) seemingly ready to rise after many pulled back recently as cyclical and so-called economic recovery stocks gained interest from investors who increasingly are looking for value. Despite the recent volatility in e-commerce equities, investors still appear to like the long-term potential of such investments that soon may show they are ripe for a rebound after their recent retreat.

BoA Global Research recently wrote a report favoring recovery stocks in the second quarter of 2021 due to the “strong” ongoing COVID-19 vaccine rollout. In contrast, “stay-at-home” stocks that investors bid up during the past year face “tougher” comparisons from 2020 than recovery stocks do.

Ten E-Commerce Investments to Purchase Feature REITs to Profit from a Post-COVID-19 Economic  Recovery

Pension fund and Retirement Watch leader Bob Carlson answers questions from Paul Dykewicz prior to COVID-19-related social distancing.

“Don’t forget about real estate investment trusts (REITs), especially the retail and office properties that suffered during the pandemic,” said Bob Carlson, editor of the Retirement Watch investment newsletter and chairman of the Board of Trustees of Virginia’s Fairfax County Employees’ Retirement System with more than $4 billion in assets.

They are benefiting as stimulus checks reach households and the economy opens up as more people are vaccinated, Carlson continued. Also, apartments should do well as employment increases and people move out of the group and family housing arrangements they entered early in the pandemic.

A good mutual fund is New York-based Cohen & Steers Realty Shares (CSRSX), which offers a current dividend yield of 3.1% and aims to achieve total return through investment in real estate securities.  CSRSX reported preliminary funds under management of $83.1 billion as of February 28, 2021, up $1.9 billion from assets under management at January 31, 2021. The increase stemmed from net inflows of $229 million and market appreciation of $1.9 billion, partially offset by distributions of $202 million.

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Ten E-Commerce Investments to Purchase Offer Variety Among REITs

Individual REITs to consider are American Campus Properties (ACC), Brixmor Property (BRX), Macerich (MAC), National Retail Properties (NNN), Simon Property Group Inc. (NYSE:SPG), Spirit Realty Capital (SRC) and Weingarten Realty (WRI), Carlson counseled.

American Campus Properties (ACC), of Austin, Texas, describes itself as America’s largest developer, owner and manager of student housing communities. The company is a fully integrated, self-managed and self-administered equity real estate investment trust with skills in the design, finance, development, construction management and operational management of student housing properties.

As of year-end 2020, American Campus Communities owned 166 student housing properties with approximately 111,900 beds. Including its owned and third-party managed properties, ACC’s total managed portfolio consisted of 206 properties with approximately 141,100 beds. Its current dividend yield is 4.3%.

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Ten E-Commerce Investments to Purchase Feature Brixmor Property

Another of the ten e-commerce investments to purchase is New York’s Brixmor Property, the owner and operator of nearly 400 retail centers across the country.  Its 393 retail centers comprise approximately 69 million square feet of retail space in established trade areas.

The company offers a current dividend yield of 4.2% and seeks to own and operate shopping centers that reflect its vision “to be the center of the communities” it serves by featuring a diverse mix of thriving national, regional and local retailers. Brixmor partners with approximately 5,000 retailers including The TJX Companies, The Kroger Co., Publix Super Markets, Wal-Mart, Ross Stores and L.A. Fitness.

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Macerich Joins Ten E-Commerce Investments to Purchase 

Santa Monica, California-based Macerich is a REIT that owns, operates and develops major retail real estate properties. Through March 25, 2021, Macerich had sold 36.0 million shares of common stock under its “at the market” equity program at a weighted average price of $13.54 per share to produce gross proceeds of approximately $487.3 million. Approximately 1.0 million shares remain available to be issued under the program at press time. Its current dividend yield is 4.9%.

The company is under contract to sell a 95% interest in Paradise Valley Mall, a non-core asset in Phoenix, Arizona, for $100 million to a newly formed joint venture. The transaction is expected to close in late March 2021, and is anticipated to generate net proceeds of approximately $95 million to the REIT. Macerich will retain a 5% joint venture interest in this multi-year redevelopment.

The REIT has obtained commitments from its joint lead lenders, Deutsche Bank, JPMorgan and Goldman Sachs for a new revolving line of credit and credit facility. The total capacity of the line and the credit facility is expected to be between $600 million and $800 million, with the financing slated to close in April 2021.

As of March 25, 2021, Macerich had amassed cash and cash equivalents, including pro-rata share of joint ventures, of approximately $950 million. Expected total liquidity after the close of the new credit facility and the Paradise Valley sale is pegged at a range of $1.65 billion to $1.85 billion prior to paying off the current line of credit.

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Ten E-Commerce Investments to Purchase Include National Retail Properties and Simon Property Group

Orlando, Florida-based National Retail Properties is a real estate investment trust that seeks to invest primarily in high-quality properties that are subject to long-term triple-net leases. The company ended 2020 with $267.2 million of cash and no amounts drawn on its $900 million bank credit facility. With a current dividend yield of 4.7%, National Retail Properties completed its 31st consecutive annual dividend increase in 2020.

Indianapolis, Indiana-based Simon Property Group, offering a 4.5% dividend yield, owns shopping, dining, entertainment and mixed-use destinations as an S&P 100 company. Its properties across North America, Europe and Asia provide community gathering places for millions of people each day and produce billions of dollars in annual sales. Simon Property Group Acquisition Holdings, Inc., sponsored by SPG Sponsor, LLC, an indirect wholly owned subsidiary of Simon Property Group, announced on Feb. 18 that it completed its initial public offering (IPO) of 30,000,000 units at $10.00 per unit.

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Spirit Realty Capital Ranks Among Ten E-Commerce Investments to Purchase

Spirit Realty Capital offers a current dividend yield of 5.8% and invests in high-quality, single-tenant, operationally essential real estate with long-term net leases. Its strategy relies on disciplined acquisition, proactive portfolio management and a strong balance sheet. By adhering to this strategy, Spirit Realty Capital has achieved a record of creating value, even in challenging economic cycles.

Based in Dallas, Texas, Spirit Realty is a triple net-lease real estate investment trust that ended 2020 with a diverse portfolio of 1,860 properties. It also has an aggregate leasable area of 40.7 million square feet in 48 states, featuring retail, industrial and office buildings leased to 301 tenants across 28 retail industries.

Walmart Is the Dividend Payer Among the Ten E-Commerce Investments to Purchase

“If you are looking to add to your holdings, the pullback in Walmart (NYSE:WMT) represents a great opportunity to do so at a discount,” said Jim Woods, editor of Successful Investing, Intelligence Report and Bullseye Stock Trader, as well as co-editor of Fast Money Alert.

Like Lowe’s Companies, Inc. (LOW), Walmart is likely to be the recipient of significantly increased consumer spending due to the big stimulus checks sent to individuals through the $1.9 trillion coronavirus relief package approved by Congress. Now that the latest federal stimulus bill has been passed, Woods said he expects both Walmart and Lowe’s to attract part of that money flow.  

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Walmart Earns Berth with Ten E-Commerce Investments to Purchase

BoA is another fan of Walmart, which the investment firm praised in a recent research that noted the retailer’s “multiple drivers” of potential comparable upside during the current fiscal year compared to the previous one. The company’s current dividend yield is 1.6%.

“We believe visibility will continue to rise on diversifying revenue streams, including digital advertising,” according to the investment firm. 

BoA rates Walmart a Buy and gives it a $175 price objective, which reveals a 30.7% potential upside from its closing price of $133.94 on March 23.

Walmart Rates Among Ten E-Commerce Investments to Purchase for Appreciation and Dividends

Walmart achieved strong growth in its e-commerce sales and revenue during fiscal year 2020. In the last several years, Walmart has been investing in e-commerce heavily.

During fiscal 2020, Walmart notched sharp growth in its e-commerce sales and revenue. The retailer also has been growing through acquisitions to enhance its online sales.

Despite becoming a retail giant through large brick-and-mortar stores, Walmart’s management has pursued digital shopping growth, as have many of its rivals in the United States and other parts of the world. Walmart’s e-commerce sales in fiscal year 2020 climbed 43.0% to $35.9 billion compared to $25.1 billion in fiscal 2019. The contributions of e-commerce are especially meaningful when compared to overall net revenue gains of 1.87% in fiscal year 2020 to reach $524 billion, up from $514.4 billion in fiscal 2019.

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Baron Partners Fund Retail Gains Place Among Ten E-Commerce Investments to Purchase

Baron Partners Fund Retail Shares (BPTRX) is a mutual fund that offers a hedge among the other ten e-commerce investments to purchase but it comes with risk, since many of its top holdings are growth-oriented stocks. Its top holding is Tesla (NASDAQ:TSLA), a pioneering electric vehicle manufacturer that sells some of its vehicles online. The stock also accounts for 39.5% of the fund’s portfolio.

The fund’s second-largest holding is CoStar Group, Inc. (NASDAQ:CSGP), a provider of information and marketing services to the commercial real estate industry. The company has built a proprietary database through data collected for more than 20 years to create high barriers to entry. Its Apartments.com online platform has emerged as a dominant multi-family internet listing service and should grow revenue more than 20%.

The third-biggest holding in the fund is Zillow Group, Inc. (NASDAQ:Z), an online real estate marketplace company that was founded in 2006. The company claims nearly 200 million people visit its websites and mobile apps every month.

Shopify Rivals Ten E-Commerce Investments to Purchase

“In terms of true retail technology, Shopify Inc. (NASDAQ:SHOP) retains the crown for running online stores,” said Hilary Kramer, who hosts the nationally aired “Millionaire Maker” radio program and heads the GameChangers and Value Authority advisory services.

FactSet surveyed analysts who cover Shopify and found an even split of 45%-to-45% who rate the stock Buy or Hold, while the remaining 10% consider it a “Sell.” In February, the company reported its fourth-quarter results that spurred an increase in analysts’ consensus price target by 19.7% to $1,474.63, roughly 26.9% away from its closing price of $1,162.00 on March 23. 

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Recent IPO Affirm Holdings Earns Considerstion Beyond Ten E-Commerce Investments to Purchase

Also keep a close eye on San Francisco-based Affirm Holdings Inc. (NASDAQ:AFRM), a publicly traded financial technology company that went public on Jan. 13 and rose 98% in its first day of trading. The company enables “installment plan purchases” in the digital era, Kramer said.

“If you’re buying something big online and don’t want to pay the full price up front, AFRM makes it happen,” Kramer said.

Affirm Holdings announced a partial early lock-up release that took effect on Feb. 26 for certain directors, officers and shareholders that reduced their restriction period before they could sell 10% of their AFRM shares, once certain stock price and other conditions are met. As a result, Affirm Holdings indicated that up to 15.6 million shares will became eligible for sale at the open of trading on March 3. The stock dropped dramatically in early March as the eligibility to sell the shares commenced.

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Ten E-Commerce Investments to Purchase Draw Attention from Radio Host Kramer

“The pandemic pushed a lot of boutiques into virtual operations and now there’s no real incentive for them to reopen the storefront,” Kramer said. “That’s been a boon for the retail platforms that support small stores’ online presence: Etsy Inc. (NASDAQ:ETSY), PayPal Holdings Inc. (NASDAQ:PYPL), Shopify Inc. and soon Stripe will join them.”

Kramer expressed excitement about a possible initial public offering for Stripe. Whichever names one likes, online shopping is not going away just because malls are open again, she added.

“A year of retail habits is hard to break,” Kramer continued. 

Paul Dykewicz conducts a pre-COVID-19 interview with Hilary Kramer, whose premium advisory services include IPO Edge,  2-Day Trader, Turbo Trader and Inner Circle.

Latin American Online Retailer Is an Alternative to Ten E-Commerce Investments to Purchase

The up-and-down trading in Latin American e-commerce giant MercadoLibre (NASDAQ:MELI) involved it hitting a stop price in late February that Woods had set after recommending the position and achieving a gain of 32.17% for his subscribers from when he first recommended it. Yet because the stock is one in which tactical opportunities exist, Woods recommended the position again on March 5. Shares are up since then. Despite a nice gain, there is still plenty of upside left, he opined. 

“If you have yet to re-allocate to MELI, I recommend you do so now and take advantage of the March volatility,” Woods said.

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MercadoLibre Merits Consideration Along With Ten E-Commerce Investments to Purchase

FactSet reports that MercadoLibre, of Buenos Aires, Argentina, has received 26 ratings with 62% giving Buy ratings, 35% ranking the stock a hold and the rest calling it a sell. The average price target for MercadoLibre has climbed 2.1% to $1,933.91, indicating 25.19% upside from the stock’s closing price on Tuesday, March 23.

MercadoLibre’s fourth-quarter revenue of $1.33 billion beat consensus estimates by $120 million but Generally Accepted Accounting Principles (GAAP) earnings per share came in at negative $1.02. The company’s gross margin of 36.8% and operating margin of 1.9% slipped beneath consensus estimates.

Columnist and author Paul Dykewicz meets with stock picker Jim Woods before COVID-19.

Certain analysts who follow MercadoLibre view the company as a winner of a shift occurring in Latin America towards increased e-commerce and financial technology adoption. MercadoLibre also operates a growing credit business. Analysts cite the company’s investments in these and other initiatives as a drag on its near-term profitability, but some of them only expect its margins to be pressured in the short term. 

Non-Dividend-paying Wayfair Merits Consideration Outside of Ten E-Commerce Investments to Purchase

Another e-commerce stock that Woods likes is Wayfair Inc. (NYSE:W). That e-commerce company provides approximately 22 million products for the home sector under various brands, nearly all of the items are at a big discount to retail prices, and everything usually comes with free shipping, he added.

Aside from liking the stock’s prospects, Woods said he appreciates its cool jingle, “Wayfair, you’ve got just what I need.”

“Wayfair is more than just a cool jingle,” Woods wrote to his Fast Money Alert subscribers on March 23. “It’s a cool earnings powerhouse. Last quarter, earnings per share (EPS) grew by 144% year over year, and in the coming quarter the company is projected to grow by another 109%.”

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Asian Online Retail Powerhouse Warrants a Good Look in Addition to Ten E-Commerce Investments to Purchase

JD.com, Inc. (NASDAQ:JD) trades just above its 200-day moving average and is starting to look ready to rise further  after China’s government cracked down on other big-cap tech companies, said Bryan Perry, who also leads the Premium Income, Quick Income Trader, Breakout Profits Alert and Hi-Tech Trader advisory services. Perry, who further heads the monthly newsletter called Cash Machine that features dividend-paying equities, said he likes the stock’s prospects to keep climbing after its brief recent pause.

One advantage that China’s e-commerce juggernaut JD.com possesses is that it lately has outperformed its rival Alibaba during the pandemic. JD.com excels, in large part, by owning its own logistics network, warehouses and distribution.

Those capabilities have helped JD.com not only stay in business but grow. Some customers have shifted to JD.com and they are paying a small premium for white-glove service that the company offers to deliver food and other items during the pandemic.

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European Company Gains Attention Along With Ten E-Commerce Investments to Purchase

Booking Holdings (NASDAQ:BKNG), formerly Priceline, is BoA’s top European reopening stock. However, the stock fell both March 22 and 23 after Germany’s Chancellor Angela Merkel ordered a new shutdown as a third wave of COVID-19 cases broke out in the country.

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In the internet sector, recovery stocks seem best positioned to outperform others in second-quarter 2020, according to BoA. These stocks include companies that were most depressed in 2020, including online travel company Booking. BoA recently upgraded the stock from “Neutral” to “Buy” with a price target boosted 15.7% from $2,550 to$2,950.

A leader in the European travel market, the company has an opportunity to leverage its Booking.com brand and business model to gain traction in North America, Asia and Latin American, BoA wrote in a research note. 

“It is pursuing a large opportunity in alternative accommodations,” according to BoA. “It is a top beneficiary of vast vaccine supply increase in Europe by 3Q.”

COVID-19 Does Not Derail Ten E-Commerce Investments to Purchase

COVID-19 vaccinations are offering hope that new cases and deaths due to the virus will slow. The Food and Drug Administration (FDA) recently approved a third COVID-19 vaccine to allow additional people to be vaccinated.

U.S. COVID-19 cases have hit 30,151,278 and led to 548,052 deaths, as of March 26. Worldwide, COVID-19 cases have reached 126,018,857, while deaths have claimed 2,765,942, according to Johns Hopkins University. America has the unenviable distinction as the nation with the most COVID-19 cases and deaths.

With the ten e-commerce investments to purchase, investors have an array of choices to profit from online sales amid the $1.9 trillion federal stimulus package, increased COVID-19 vaccine availability and the economic reopening. A recent pullback of most of their prices offers interested investors an improved entry price than they could have obtained just a few weeks ago.