These are 2 underrated ecommerce actions
August’s retail sales figures were remarkably strong compared to expectations and demonstrate the resilience of the US economy. Within this framework, e-commerce sales did not increase as strongly as they might have had, but that was only compared to analysts’ expectations. The 7.5% increase in e-commerce sales year-over-year builds on the strong gains achieved last year and is another sign of its importance in the retail environment of today. Today we take a look at two ecommerce stocks that are well positioned in their respective fields and catching the attention of analysts.
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Overstock.com, at the crossroads of two trends
If one secular trend is enough to get us interested in a stock, then two secular trends really get us excited. Overstock.com (NASDAQ: OSTK) is one of those stocks because it represents a fabulous growth story in e-commerce as well as home furnishings. These two secular tailwinds were strong before the pandemic, both were strengthened during the pandemic, and the two tailwinds continue to blow strongly now.
Needham analyst Anna Andreeva just reiterated her buy rating on the stock, calling it one of the worst-rated names in the e-commerce segment. According to her, the market is too skeptical about the recovery of the company and the structural changes put in place two years ago are paying off. Additionally, channel checks reveal strong demand trends in October and September that should support strong results. This is consistent with Cover of MarketBeat.com the furniture and furnishings sector, a sector that has experienced a sustained acceleration in revenues and profits thanks to record order books. His stock price target is $ 150, which assumes a rise of over 100%. This compares to the slightly less bullish consensus target of $ 109 which assumes a rise of just over 50%.
Overstock.com shares are up more than 2% on the data and look poised to reverse recent price weakness. There is still some resistance near the $ 72 level but, once that is overcome, we see the price action rise to the $ 80 level and then to the $ 90 level. Overstock.com is expected to release its results in late October, an event that could push prices up to the $ 100 level.
The Doordash market continues to grow
A pillar of Doordash (NYSE: DASH) growth strategy extends to verticals outside of food delivery. The company has worked hard in this area and gets noticed by the analyst because of it. Bank of America just increased the stock to a neutral buy citing its growing addressable market and growing mobile usage. Analyst Michael McGovern says there is upside risk in consensus estimates for the current year and long-term growth and we agree. In his view, the expanded offerings will help the company gain market share and stimulate catalysts such as new partnerships and international expansion.
Doordash shares are up more than 6% on the news and are trading at the highest levels since the IPO. In our view, today’s price action is an acceleration of a rally that started earlier this year and will lead to a continuation of that same rally. With price action hitting a new high, our target is now $ 320, which is about 50% up from current price action. 
