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Investing in Promising E-Commerce Stocks for 2025

The rise of Internet Commerce has accelerated since the pandemic. This growth is especially pronounced among Gen-Z consumers, who are adept at navigating the digital landscape and prefer online shopping. As technology continues to evolve, the online retail sector is shaped by enhanced user devices and sophisticated artificial intelligence (AI) platforms that improve transaction efficiency and customer satisfaction.

E-Commerce Sector on the Rise

E-commerce companies differentiate themselves through advanced technology that enhances product presentation, simplifies navigation and payment processes, and accelerates delivery and returns. Companies that leverage big data analytics are positioned to outperform their competitors in this evolving market. Moreover, a rising trend is the subscription model for frequently purchased items, making it easier for consumers to order and for retailers to manage inventory. This model often includes discounts, appealing to a broad customer base. The trend is expected to continue expanding, incorporating both low- and high-value items as ‘as-a-service’ offerings.

Gen-Z consumers are also driving the social commerce trend, which facilitates product discovery and purchasing directly through social media platforms. Influencer endorsements play a critical role in this process, directing traffic to brands’ storefronts within these networks.

Top E-Commerce Stock Picks

We have curated a list of five promising Internet Commerce stocks, each with a favorable outlook for the remainder of 2025. These companies have experienced positive earnings estimate revisions in the past 60 days, and each carries a Zacks Rank of #1 (Strong Buy) or #2 (Buy). A full list of Zacks #1 Rank stocks can be found here.

The chart below illustrates the year-to-date price performance of our selected stocks.

Image Source: Zacks Investment Research

Carvana Co.

With a Zacks Rank of #2, Carvana has bolstered its logistics and auction capabilities by acquiring ADESA’s U.S. operations. This integration enhances their refurbishment processes, enabling CVNA to upscale the quality and volume of vehicles available for resale. Looking ahead, Carvana expects sequential year-over-year growth in retail unit sales for the first quarter of 2025. Despite its position as the nation’s second-largest used car retailer, CVNA holds a modest 1% share of the fragmented U.S. automotive market, indicating substantial growth prospects as online vehicle sales rise.

For the current year, Carvana projects a revenue growth rate of 23.6% and an impressive earnings growth rate exceeding 100%. The Zacks Consensus Estimate for current-year earnings has risen by 3% in the last 30 days.

eBay Inc.

Zacks Rank #2 eBay has experienced growth driven by its focus categories and geo-specific investments. The company has capitalized on robust advertising momentum and the increasing demand for refurbished products. Enhanced financial service offerings and managed payment solutions further strengthen eBay’s market position.

eBay also introduced proprietary large language models to enhance search capabilities and boost productivity across various functions. The projected revenue growth rate for eBay stands at 1.7%, with earnings expected to grow by 8.4%. The Zacks Consensus Estimate for current-year earnings has improved by 1.1% over the last 60 days.

Tripadvisor Inc.

With a Zacks Rank of #2, Tripadvisor benefits from a growing presence in its Viator and TheFork segments. The company’s focus on enhancing app experiences also improves pre- and post-shopping interactions. Innovations in marketing strategies and product offerings further drive growth. Tripadvisor is deepening its use of generative AI to elevate the travel booking experience.

Tripadvisor anticipates revenue growth of 4% and earnings growth of 7.7% for the current year, with the Zacks Consensus Estimate for current-year earnings up by 3.7% over the past 60 days.

Chewy Inc.

Zacks Rank #2 Chewy operates as a pure-play e-commerce business in the United States, offering a wide range of pet products and services through its website and mobile applications. The company provides everything from pet food to health products for various animals.

For the upcoming year, Chewy anticipates revenue growth of 4.5% and earnings growth of 18.3% (ending January 2026). The Zacks Consensus Estimate for current-year earnings has shown an increase of 5.1% in the last 30 days.

Alibaba Group Holding Ltd.

Zacks Rank #1 Alibaba has benefited from monetizing its Taobao and Tmall platforms, along with advancements in cloud services and AI-integrated products. The company is experiencing strong growth in its international retail commerce, particularly through the success of AliExpress’ offerings. Advancements in its e-commerce strategies and market presence position Alibaba well for ongoing success.

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Alibaba Group’s Growth Driven by Wholesale Business Expansion

Alibaba Group Holding Limited (BABA) is gaining momentum in the wholesale business, largely attributed to the demand for cross-border value-added services. The expansion of China’s wholesale commerce sector serves as a significant positive factor, while strong local consumer services and the development of Cainiao logistics are boosting BABA’s revenue growth trajectory.

Current Financial Outlook for Alibaba

For the current fiscal year, which concludes in March 2026, BABA expects a revenue growth rate of 4.5% along with an impressive earnings growth rate of 24.4%. Notably, the Zacks Consensus Estimate for the current year’s earnings has seen a 1.1% increase over the past month, reflecting analysts’ growing confidence in the company’s performance.

Industry Insights: Semiconductor Sector Growth

In the broader market, Zacks has identified a top semiconductor stock, noted for being only a fraction of NVIDIA’s size. Despite NVIDIA’s remarkable ascent of over 800% since its recommendation, opportunities for substantial growth remain with this new contender in the chip industry.

Driven by robust earnings growth and an expanding customer base, this semiconductor company is well-positioned to meet the surging needs for technologies like Artificial Intelligence, Machine Learning, and the Internet of Things. The global semiconductor market, valued at $452 billion in 2021, is projected to escalate to $803 billion by 2028.

Latest Stock Recommendations

For those seeking the latest investment opportunities from Zacks Investment Research, they are offering access to their list of the 7 Best Stocks for the Next 30 Days. Interested readers can click here to obtain this report free of charge.

Among the companies included in their analysis are:

• eBay Inc. (EBAY): Free stock analysis report
• TripAdvisor, Inc. (TRIP): Free stock analysis report
• Alibaba Group Holding Limited (BABA): Free stock analysis report
• Carvana Co. (CVNA): Free stock analysis report
• Chewy (CHWY): Free stock analysis report

This article was originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.