The nation may still be coping with COVID lockdown, but that doesn’t mean that economic progress isn’t still going on out of sight.
It’s true that public spaces are hardly crowded. Restaurants, concert venues, cinemas, and gyms are empty.
But day to day business is alike and kicking in the digital space. In spite of everything that’s happening, the Port of Los Angeles, a main e-
commerce hub, is bursting at the seams
Port officials reported that August 2020 was their busiest month on record, with cargo volume up by about 12% both from July and from August 2019 just one year before.
We’re seeing similar encouraging cargo statistics out of Long Beach, not to mention the fact that consumers and e-tailers are gearing up for a strong Christmas season, typically the peak of consumer shopping for the year and worth roughly $1 trillion.
Altogether, it’s a sign that the economy is picking up steam online, instead of on main street, building towards a hidden recovery.
With that in mind, today I want to reveal a tech leader that is helping thousands of small businesses throughout the U.S. set up online stores.
The stock is beating the broad market by 444%.
The Christmas Rush
Now then, there’s even more good news from the logistics industry. It’s a sector I follow so that I can keep my finger on the pulse of what’s happening in the real economy.
And by definition, everything bought or sold online has to pass through some form of shipping center before it arrives at the customer’s door.
Officials at the Port of Los Angeles say August may go down as the strongest on record. That’s key because this is the main port for U.S.-Asian trade and a big e-commerce hub.
Shipping executives recently told the Wall Street Journal that booming online sales account for much of the increase.
On top of that, cargo shipped by domestic airlines rose 12.8% in July, the latest month for full data. That is the biggest increase in just over a decade.
Meantime, Amazon.com Inc. (AMZN) said it plans to hire 100,000 extra workers in the U.S. and Canada. The tech giant also will open 100 centers for delivery and package sorting.
Not only that, another company is planning on sending out 885 million new self-powered computers to Americans within the next few months. The idea is to make even in-person payments completely touchless and digital.
That means that, along with the hidden economic recovery, the makers of that one device could see a 1768% revenue surge within one year.
Click here to learn all about this special angle on the digital economic transformation, along with my other standout companies to watch for the digital transformation of the whole world, all in my special research report.
But either way, we are seeing signs of a strong economic rebound that may not yet be reflected in jobless data.
At the very least, firms around the U.S. are expecting strong demand during the crucial Christmas shopping season.
That’s backed by a new Rasmussen Reports survey. It found that economic confidence jumped 8 points to 118.3, the highest reading since the COVID shutdowns began last March.
In other words, while we won’t be back to full employment by the end of the year. But we could see a massive rebound in Christmas spending, especially online.
The Website Helper
But where this year’s e-commerce holiday turnaround comes in, and that’s where Wix.com Ltd. (WIX) comes in.
The company is known for its broad range of tools to create a smart-looking and functional website…
Users benefit from editing tools, pre-built templates, graphics, images, and fonts that make it easy for anyone with basic computer skills to launch a state-of-the-art website.
Founded in Israel in 2006, Wix is growing its client base by 19% a year. It now boasts 154 million registered users.
While many of those users take advantage of Wix’s free tools, millions are paying for premium services. And that conversion is growing 26% faster than free users.
Wix sells dozens of apps on its platform. It also offers dedicated sites for restaurants, music venues, photographers, and e-commerce players.
Other services include integrating with payments firms for small merchants Square Inc. (SQ), online marketing and logo-makers.
I last told you about Wix back in March 2019. Since then, the stock gained 151.7% through the S&P’s recent peak on September 2.
Wix beat that benchmark by 444.7% during the period. But I still see plenty of upside ahead.
Long Term Prospects
Over the past three years, Wix has grown per-share earnings by 77%. Chalk that up to the power of adding 3 million new registered users per month.
Much of its high-margin growth can be attributed to the firm’s focus on its e-commerce funnel. The company has positioned itself to ride this “buy online” wave, especially in the COVID era.
According to Wix, just one of its recent e-commerce options served 500,000 merchants at the end of its most recent quarter.
With Black Friday and Cyber Monday around the corner, that growth will come in handy. But of course, we’re not pinning our hopes on short-term sales.
Good thing history is on our side here. As I noted earlier, the company has grown per-share earnings by an average of 77% over the past three years.
At that rate, they will double every 11.5 months.
To be on the conservative side, I cut that by two-thirds. That still gives us a double in just under three years.
And there’s more good news. We can pick up shares at a discount to their long-term trajectory.
That’s because the stock has declined in recent weeks as software stocks remain temporarily out of favor based on fears of COVID-related slowing growth.
That’s fine with us. As savvy tech investors, we like to take the long view.
Doing so allows us to pick up shares of great stocks like Wix on the cheap and bolster our portfolio for the long haul.
That makes Wix one of those stocks that can turbocharge your portfolio for many years to come.
Cheers and good investing,
Michael A. Robinson