3 ASX shares I’d buy because of the online sales boom

An online sales boom has been magnified as a result of the lockdown during the pandemic. It’s anticipated this boom will continue post the coronavirus.

ABC News reported that the virus has shifted consumer behaviour. Because consumer preferences have changed, this has forced retailers to re-think their offerings and move to, or compliment, their operations with an online presence.

For this reason, I believe an investment in either one of these 3 companies could reward the willing investor:

• Kogan.com Ltd (ASX: KGN)
• Goodman Group (ASX: GMG)
• NextDC Ltd (ASX: NXT)

Kogan.com

The Kogan.com share price has soared 185% in the past year.

Why?

As an online retailer selling a diversified mix of products and services and with a loyal customer base, sales have soared – especially since the lockdown. 

Is it too late to buy?

After completing a A$100 million capital raise this month, Kogan now has the flexibility to invest and grow the business.

In its investor presentation released this month, the group announced a significant increase in sales, earnings and customer numbers. 

In my view, Kogan has benefited enormously from online sales because of its diverse offering. Its increase in marketing spend is helping attract customers and boost sales. For this reason, I believe the share price will continue to rise.  

Goodman Group

While the share price has increased by 2% in the past year, I believe there are reasons to be optimistic. 

In its recent investor newsletter to security holders, the group advised it remains in a solid position and reaffirmed its FY20 earnings guidance of 57.3 cents per share, up 11% on FY19, and a full year distribution of 30 cents per share. 

Goodman supplies logistics and warehousing globally. This aids in the delivery of goods for the online sales boom. It’s seeing stronger demand for new space and the development book stands at $4.8 billion. 

In my view, Goodman is an attractive investment that I think will reward investors despite the small increase in share price in the past year.

NextDC

The NextDC share price has soared 38% in the past year on the back of the demand for its data centres. 

Last month, the group completed a $191 million share purchase plan for eligible shareholders. It’s expected that the funds raised will help the development of a new data centre to meet increased demand. 

CEO, Craig Scroggie, said 

“…well capitalised to continue growing our premium data centre services platform in support of our key customers who continue to drive the growth of the digital economy.”

As a result, NextDC Ltd could deliver significant capital gains for buy and hold investors. 

Foolish takeaway

The recent crisis promoted the benefit of e-commerce with some trying online shopping for the first time. The above-mentioned companies could reward investors who are looking to profit from the rise of online sales.

More reading

• I would buy and hold Kogan and these ASX shares until 2030
• Up 250% since March: is it too late to buy Kogan shares?
• 2 ASX shares to buy for beginners
• Will Xero shares and these 2 other ASX companies be portfolio staples by 2030?
• Why Zip Co and these All Ords shares have doubled in 12 months

Motley Fool contributor Matthew Donald has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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