European E-Commerce Small-Cap Stocks are Having a Great 2020

European small-caps might be the sneaky success story of the year; some have soared upwards of 500%.
Steven LernerOct 05,2020,22:45

FAANG, shmang.

Large-cap technology stocks have been the darlings stocks of 2020 in New York, while European large-cap counterparts have posted a comparably lackluster market performance. The Continent's small-caps, however, might be the sneaky success story of the year.

Whereas the stock price of Amazon (Nasdaq: AMZN) has increased by about 70% in 2020, it is still trailing several European small caps that have seen their stock prices soar upwards of 500%.

Hywel Franklin, head of European equities at Mirabaud Asset Management Ltd, tells Bloomberg that small-cap stocks “can be quite agile in an environment where things are changing quite quickly.”

And this outperforming of small caps is not a 2020 phenomenon.

According to research from BNP Paribas, European small caps have outperformed large caps by 2.5% since June 2015. During that same time, U.S. small caps lagged large caps by 5.7%.

Westwing (ETR: WEW), an e-commerce seller of furniture in Germany, has seen its stock price ascend 488% this year. Revenue grew 91% in the second quarter as more consumers in Europe shopped online for home accessories.

Best of the Best (LON: BOTB), an online competition company, is experiencing a massive stock price increase of 379% in 2020. Analysts recently upgraded the projected 2021 revenue for the company due to its 57% sales increase.

Investors for beauty and hair product seller Lyko Group (LYKO.A-SE) have seen their stock price grow 354% in 2020. Although the company is not profitable, its revenue grew 25% last year.

Mobile gaming provider G5 Entertainment (OTCMKTS: GENTF) has seen its user base expand by 13% this year, with revenue rising 27%. The stock price is up 266%.

London-based cloud communications solution LoopUp (LON: LOOP) is piggybacking on the Zoom (Nasdaq: ZM) revolution. The stock is up 192% after adjusted earnings jumped 247% year-over-year. Revenue from core products is up 54%.

Home24 (ETR: H24), another online furniture seller, grew its revenue by 22% this year. The stock price is up 181%.

Finally, clothing seller Boozt (STO:BOOZT) reported a 36% growth in revenue during the second quarter. In 2020, the stock price is up 138%.

Topics:europe, small caps,
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