Two Under-the-Radar Supply Chain Winners

I’m sure you’ve heard all about the backlog in the supply chain…

Perhaps you’ve even been affected by it.

As we come out of the COVID-19 pandemic, one of the biggest impacts continues to be the major disruption in the supply chain ecosystem – which is introducing new and unforeseen barriers each and every day.

Some of these include…

  • Material scarcity: Thanks to an abrupt rise in post-pandemic consumer demand, companies and suppliers alike are now struggling with limited availability for many parts and materials.
  • Increasing freight prices: The need for container shipping has increased considerably throughout the pandemic, as the lockdown measures have now triggered a surge in e-commerce sales – leading to greater import demand for raw materials and manufactured consumer goods (most of which are moved via shipping containers).
  • Port congestion: As a result of increased container ship demand, you’re now seeing port congestion – which is caused when a ship arrives at a port but cannot load (or unload) because that station is already at capacity.

Add it all up, and everything from a subzero refrigerator to the hottest holiday toy is now seeing lead times explode like never before.

Knowing this, the key question any savvy investor would ask is…

What’s the investment opportunity here?

Today, I’d like to share two companies that could emerge as “under-the-radar” winners in this supply chain bottleneck.

Supply Chain Winner No. 1: Etsy (Nasdaq: ETSY)

The crafty online marketplace primarily connects buyers and sellers in the United States – offering 85 million items in its various retail categories. Knowing that you’re buying an item from a mom-and-pop shop from Iowa with a three- or four-day lead time (instead of something coming from a container ship from China) could trigger more traffic leading into the holiday season.

Chart – Etsy Daily

Supply Chain Winner No. 2: The RealReal (Nasdaq: REAL)

The online marketplace for consigned luxury goods could see an uptick in consumer interest – as the combination of inflation and supply chain uncertainty could lead to more people looking for cheaper, preowned (but still verified) high-end products this holiday season. For instance, why pay $1,000 for a Burberry scarf when you can get a used one in great condition – and on time – for only $200?

Chart – The RealReal Daily

Action Plan

Both Etsy and The RealReal look like supply chain winners. And for less than $12 per share, The RealReal seems like a bargain. Both trades are under-the-radar supply chain winners heading into the holiday shopping season.

P.S. Speaking of winners, Trade of the Day Plus members just hit a huge winner on Hertz warrants (OTC: HTZZW). If you’re ready to “level up” and join Trade of the Day Plus, my next pick drops this Wednesday. Click here to get it emailed directly to you – in live video format!

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