E-commerce has been the golden ticket for retailers during the pandemic.
Target on Tuesday reported a 118% increase in online sales in its recent quarter, while privately held grocery delivery company Instacart has doubled its valuation to $39 billion in its recent round of financing.
Todd Gordon, founder of TradingAnalysis.com, says Shopify could be the best way to play the surge in e-commerce shopping.
"It's the leading digital e-commerce engine for small businesses, that allows these business to access multiple channels. It's hard to justify the current valuation in Shopify, I get it, but then again, it's hard to justify exactly how the face of e-commerce has changed with the push from Covid," Gordon told CNBC's "Trading Nation" on Tuesday.
Shopify trades at more than 300 times forward earnings. The EBIZ global e-commerce ETF, by comparison, trades with roughly a 90 times multiple.
"The chart of Shopify is well-contained in an uptrend channel. Believe it or not, they don't face technical resistance till $2,000," said Gordon.
A $2,000 target implies 52% upside from current levels.
Nancy Tengler, chief investment officer at Laffer Tengler Investments, says Target is a good bet on online shopping after its latest quarter.
"I really like the quarter," Tengler said during the same interview. "I think analysts are disappointed because the company's going to invest in defending the growing market share, and some of the expense in digital fulfillment is going to be a little bit more than expected. … If you're a buyer and holder for the next three to five years, this is an opportunity to step in and get it a little bit on sale."
Target fell more than 6% on Tuesday following earnings. It is up nearly 60% in the past 12 months.
Those aren't the only e-commerce names Gordon and Tengler like. Gordon said Best Buy looks to have solid support to hedge against any downside, while Tengler prefers homebuilder plays such as Lowe's and Home Depot.
Disclosure: Gordon holds SHOP and BBY. Laffer Tengler Investments holds TGT, HD and LOW.