The Zacks Analyst Blog features Dollar General, Sportsman’s Warehouse, PC Connection and Arhaus

For Immediate Release

Chicago, IL – November 23, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events affecting stocks and the financial markets. Stocks recently featured on the blog include: Dollar General Corp. DG, Sportsman’s Warehouse Holdings, Inc. SPWH, PC Connection, Inc. CNXN and Arhaus, Inc. ARHS.

Here are the highlights from Tuesday’s analyst blog:

E-Commerce Sales Surpass $1 Trillion: 4 Solid Stocks to Buy

The pandemic forced millions to shop from home, leading to an e-commerce boom. Since then, e-commerce has become the preferred way of shopping for people as they realized the convenience and security of online shopping. This has caused e-commerce to grow by leaps and bounds in recent years.

E-commerce has played an important role in helping the retail sector survive during the pandemic and has since boosted sales amid the challenges of rising commodity prices. Given this scenario, stocks with a strong online presence such as Dollar General Corp., Sportsman’s Warehouse Holdings, Inc., PC Connection, Inc. and Arhaus, Inc.are expected to benefit in the short term.

Ecommerce sales continue to rise

According to the Department of Commerce, e-commerce sales in the United States surpassed $1 trillion for the first time, hitting $1.02 trillion over the past 12 months. And this despite rising raw material prices. Online sales are expected to grow in single digits this year for the first time since 2009.

Online sales are forecast to grow 9% in 2022 as inflationary pressures continue to weigh on retail. Retail was already doing quite well back then, and sales are continuing to rise. E-commerce plays a key role in this.

The third quarter was relatively better for the retail sector. According to the Census Bureau, total retail sales for the quarter were $1,792 billion, up 0.7% sequentially. Online sales grew 3% month-on-month and 10.8% year-on-year to $265.9 billion. E-commerce accounted for 14.8% of total retail sales in the third quarter.

Although online retail sales are expected to grow in the single digits this year, the expansion of e-commerce has been massive since the outbreak of COVID-19. E-commerce has been making its presence felt for quite some time, but the pandemic gave it a massive boost as millions shopped from home, fearing catching the virus, and tried to maintain social distancing.

Although people started visiting brick-and-mortar stores as the economy reopened, e-commerce has continued its dominance. In fact, earlier it was forecast that e-commerce spending would hit $1 trillion in 2024, but the goal was reached this year itself, proving its immense potential.

Needless to say, the market has doubled in just three years. E-commerce spending is 25% above pre-pandemic levels. If the pandemic hadn’t hit and the market had grown 14-15%, which it has for years, total sales would have been about $815 billion, down about $200 billion.

Our selection

Given this scenario, it would be prudent to invest in these four stocks with a strong online presence. Each of the stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the full list of today’s Zacks #1 Rank stocks can be found here.

Dollar General Corp. is one of the largest discounters in the United States. DG deals in low-priced goods, usually $10 or less. Dollar General offers a wider variety of merchandise, including consumables, seasonal items, home products, and apparel.

Dollar General’s expected earnings growth rate for the year to date is 13.8%. DG shares are up 7.7% over the past 30 days. Dollar General Home currently has a Zacks Rank #2.

Sportsman’s Warehouse Holdings, Inc. is an outdoor sporting goods retailer. The stores offer camping products, fishing products, and hunting and shooting products. SPWH stores also offer apparel products, footwear products, as well as optics, electronics and accessories.

Sportsman’s Warehouse’s expected earnings growth rate for the next year is 25.2%. The Zacks consensus estimate for the year to date is up 3.6% over the past 60 days. SPWH currently carries a Zacks rank #1.

Vivint Smart Home, Inc. is a smart home company primarily operating in North America. VVNT delivers an integrated smart home system with in-home advice, professional installation and support from its smart home professionals, as well as 24/7 customer care and monitoring.

Vivint Smart Home’s expected earnings growth rate for the current year is 70.2%. VVNT shares are up 23.6% over the past 30 days. VVNT currently has a Zacks Rank #2.

Arhaus, Inc. is a lifestyle brand and omni-channel retailer of high quality home furnishings. ARHS offers a range of heirloom quality products.

Arhaus’ expected earnings growth rate for the year to date is 21.7%. The Zacks consensus estimate for the year to date is up 15.1% over the past 60 days. ARHS currently carries a #2 Zacks rank.

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Past performance is no guarantee of future results. The potential for loss is inherent in every investment. This material is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether an investment is suitable for a is suitable for certain investors. It should not be assumed that investments in any security, company, sector or market identified and described have been or will be profitable. All information is current at the time of publication and is subject to change without notice. Any views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or investment management activities for securities. These returns are from hypothetical portfolios composed of Zacks rank = 1 stocks rebalanced monthly excluding transaction costs. These are not actual stock portfolio returns. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information on the performance figures presented in this press release.

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Dollar General Corporation (DG): Free Stock Research Report

Sportsman’s Warehouse Holdings, Inc. (SPWH): Free Stock Research Report

PC Connection, Inc. (CNXN): Free Stock Research Report

Arhaus, Inc. (ARHS): Free Stock Research Report

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