Of course, TV shows and movies employ many workers behind-the-scenes to operate cameras, direct actors, conduct marketing activities and handle all of the financial details. Similarly, many e-commerce stocks rely on other companies to provide equipment, warehouses, technology and transportation services.
With global e-commerce sales expected to expand at a rather brisk CAGR of 9% between 2023 and 2027, many of these behind-the-scenes players should deliver impressive returns for investors over the long-term. Moreover, if global economic growth accelerates more than expected in the coming years, e-commerce could easily return to its pre-pandemic growth rates of 12%-14%. Here are three behind-the-scenes e-commerce stocks that can produce home runs over the long term.
Symbotic (SYM)
Source: T. Schneider / Shutterstock.com
Symbotic’s (NASDAQ:SYM) AI-powered robotic systems automate warehouse operations. With e-commerce companies and large retailers utilizing a high number of warehouses, SYM should benefit from the rapid growth of e-commerce in the coming years.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Moreover, Symbotic’s autonomous, mobile robots should be very appealing to e-commerce firms and large retailers because the robots are undoubtedly much cheaper and more efficient than human employees.
And validating SYM’s products and technology, industry giants Walmart (NYSE:WMT), FedEx (NYSE:FDX) and Target (NYSE:TGT) have all used its products.
Last quarter, Symbotic’s revenue jumped 79% versus the same period a year earlier to $78.6 million while its EBITDA, excluding certain items, came in at $14 million compared with an adjusted BITDA loss of $16 million during the same period of 2022.
Prologis (PLD)
Source: rafapress / Shutterstock.com
Prologis (NYSE:PLD) is the world’s biggest warehouse developer, according to CoStar.
And since ProLogis’ rents are now significantly lower than the U.S. mean, the firm will be able to boost its rents considerably this year, potentially setting the stage for its top and bottom lines to surge. Further, CFO Tim Arndt reported on the company’s Q4 earnings call that it expects annual market rent growth to average between 4% and 6% over the next three years.
Also noteworthy is that PLD is investing in many other high-growth areas, including solar energy, zero-emission electric truck charging stations, autonomous mobile robots and artificial intelligence-guided warehouse management tools. Those investments should bear considerable fruit for the company.
Given all of PLD’s strong, positive catalysts, it’s definitely one of the best e-commerce stocks to buy.