Will Ocado shares benefit from a shift in grocery shopping?

first_imgWill Ocado shares benefit from a shift in grocery shopping? I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Image source: Getty Images. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Simply click below to discover how you can take advantage of this. See all posts by Karl Loomes I’ve been saying for some time that changes seen during lockdown may fundamentally shift the way many individuals and companies work. I suspect one prime candidate for this is online grocery shopping. Already a growing trend, coronavirus and social distancing have arguably pushed the industry to a new level. Frontrunner Ocado (LSE: OCDO) certainly seems to think so.More money pleaseEarlier this month, the online grocer announced its intention to raise more than £1bn in fresh equity and debt. Ocado said the money will be used to make the most of the surge of interest brought about by coronavirus. The pandemic, it argues, has been a “catalyst” for a permanent move to online grocery shopping.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Ocado said the money will be giving it “the financial flexibility to capitalise on opportunities arising from the significant acceleration in online adoption and grow faster over the medium term”.This position as a major player in online groceries has not gone unnoticed. Since the start of the year, Ocado shares have outperformed rivals, and currently stand about 60% higher than early January.Interestingly, Ocado may be set to make most of its money not from increased grocery sales at its own company. Instead, increased online grocery sales across the globe may help.In recent years, much of Ocado’s business has shifted towards its intellectual property. Specifically, automated warehouse and delivery systems. You may still be buying your online groceries from Sainsbury’s or Tesco, but very soon, your favourite grocer could be using Ocado systems to help you do it.Will things change?The one major concern I have is there’s always a chance that things won’t actually change that much. However, I find this pretty unlikely. As I said, there was already a growing trend towards online shopping. It seems nearly impossible that at least some people who began online shopping won’t stick with it.But I’m old enough to know that it’s too tough to call. I’ve seen times when we all thought things would shift fundamentally, only to look back and laugh a year or two later. People are creatures of habit, and though some people will undoubtedly prefer shopping online, some will go back to ‘normal’ as soon as they can.So do I think Ocado is a buy? Its diversification away from simply selling groceries, to the technology that allows companies to do it, could be key to making the answer ‘yes’.It seems likely that not just individuals may change their behaviour due to lockdown, but also companies. The automated and more efficient processes that may have been implemented (or at least observed) during the pandemic may have the supermarket giants looking at their systems.Ocado is seeing increased demand for its groceries at the same time as other grocers are trying to lease its automated systems. That sounds good to me.center_img Our 6 ‘Best Buys Now’ Shares Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Enter Your Email Address Karl Loomes | Monday, 29th June, 2020 | More on: OCDO Karl has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. “This Stock Could Be Like Buying Amazon in 1997”last_img read more