Motley Fool investors couldn’t be blamed for thinking when it comes to e-commerce stocks, you can’t go wrong! During the pandemic, investors swarmed these companies that provided a solution to being stuck at home. Today, we’re used to a world where we can receive items we order practically overnight – if not literally!
Yet supply chain difficulties became a prominent situation this year when the world became used to this type of shopping. Now, supply lags behind demand, and with COVID-19 providing labour shortages, this could last well into 2022.
But don’t be fooled. There are certainly e-commerce stocks out there that continue to have supply available. Not every company falls under this lagging category. And with the growth of e-commerce, you’ll want to have these types of companies in your portfolio.
At first, it might seem strange that Shopify (TSX:SHOP)(NYSE:SHOP) wouldn’t be affected by supply chain demands. After all, it depends on its merchants to create supply in order to fill that demand. Yet what was once a side hustle for many Canadians is now a business because of the pandemic, leaving many merchants involved with Shopify stock firing at all cylinders.
Shopify stock continued to outpace expectations during the last several quarters. It continues to be one of the top e-commerce stocks out there. As it opens more fulfillment centres and expands its payment processes, management believes even more record-setting growth is expected for Shopify stock.
“It took 15 years for our merchants to get to $200 billion in cumulative GMV, and just 16 months to double that to $400 billion,” said Shopify President Harley Finkelstein. “[It] is clear that entrepreneurs are embracing a future in which retail happens everywhere. Shopify is making it easier for more merchants worldwide to build direct and authentic relationships with their customers, in creative ways that work best for them.”
Shopify stock trades near all-time highs of $2,055 as of writing, up 35% year to date.
Still worried about supply chain issues for e-commerce stocks? Then I would invest in the e-commerce-related company Kinaxis (TSX:KXS). Kinaxis stock provides supply chain solutions using artificial intelligence and data to provide enterprise-level companies, creating creates the smoothest supply chain possible.
Kinaxis stock has been on a tear amongst e-commerce stocks after reporting strong earnings this month. In fact, it increased its full-year revenue guidance to achieve 23% growth year over year. It also reported a record number of new customer wins. This comes as it’s clear the supply chain issue isn’t about to go away any time soon.
“We won a record number of new customers this quarter, and year-to-date we have more than tripled new customer wins compared to the same time last year,” said Kinaxis President and CEO John Sicard. “Supply chain issues continue to be at the centre of boardroom conversations and daily newsfeeds, and we are helping companies navigate the complexities.”
Shares of Kinaxis stock trades near all-time highs at $220 as of writing, up 23% year to date.
Canada’s iconic Canadian Tire (TSX:CTC) is another company I would urge Motley Fool investors to consider. The company remains confident it can not only weather the supply chain storm but can also steer completely around it. The company has its own storage facilities and providers. Management stated recently that this allows it to keep a massive backlog of products.
Furthermore, while e-commerce stocks like Canadian Tire continue to boost sales online, Canadian Tire offers in-store sales now as well — and just in time for the holidays. This comes from a variety of sources, including Sport Chek and Marks under the Canadian Tire brand.
“Our customers continue to connect with us in-store and online and our eCommerce sales remain at twice pre-pandemic levels, demonstrating the success of our strengthened omnichannel capabilities across our banners,” said Canadian Tire President and CEO Greg Hicks. “Our strong supply chain capabilities have put us in an excellent inventory position as we head into the important fourth quarter.”
Shares of Canadian Tire stock are at $298 as of writing, up 43% year to date, offering a dividend yield of 1.74%.