Last year’s virus scare was the perfect opportunity for brick-and-mortar retail outlets to switch to e-commerce, recalls Mark Skousen, a leading growth stock expert and editor of TNT Trader.

One of the retailers that made the switch most effectively is San-Francisco-based company Williams-Sonoma (WSM), which offers home products. It has more than 600 stores nationwide, outlets internationally and sells everything from cookware to home furnishings.

But the big news is that Williams-Sonoma is one of the largest e-commerce retailers in the United States and has historically been one of the most profitable e-commerce companies.

E-commerce accounts now for 70% of the total revenues of the company. Moreover, e-commerce grew 47% in the fourth quarter.

Overall, earnings rose 86% to $681 million in 2020 on revenues of $6.8 billion. Profit margins are more than 10% and the return on equity (ROE) is an astonishing 47%.

The stock has been moving up and is now trading for 21 times earnings, which is still reasonable.

Business is booming into 2021. It is expected to generate more revenues from the e-commerce channel as it streamlines the checkout process and develops better mobile sites.

WSM has had a rising dividend policy since 2006 and is currently paying out a quarterly dividend of 53 cents per share.

Let’s add Williams-Sonoma to our TNT Trader portfolio today and set a protective stop of $145 a share. For those willing to take greater risks, consider buying the WSM August $200 call options, which recently traded for around $12 and expire on August 20.

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