10 Best Economic Recovery Stocks to Buy

4. Shopify Inc. Class A Subordinate Voting Shares (NASDAQ:SHOP)

Estimated average analysts’ upside: 73.08%

Revenue CAGR last 5 years: 43.27%

Number of Hedge Fund Holders: 64

​​​Shopify Inc. Class A Subordinate Voting Shares (NASDAQ:SHOP) is a multinational e-commerce company that provides a cloud-based platform on which businesses can create and manage online stores. The platform also offers complementary services like payment processing, marketing, shipping, and customer engagement tools. The company has managed to establish an almost complete ecommerce solution for businesses of all sizes and managed to attract even such giants like Mattel and Nestle. SHOP is exposed to the e-commerce sector fundamentals, which makes the company well-positioned to benefit from increased online retail activity during economic recoveries. The Canada-based company ranked 7^th on our recent list of 10 Best SaaS Stocks to Buy According to Billionaires.

Shopify Inc. Class A Subordinate Voting Shares (NASDAQ:SHOP) delivered exceptional results in Q4 2024, with revenue growing 31% and achieving a 22% free cash flow margin, contributing to an annual revenue growth of 26% and an 18% free cash flow margin for the year. The company’s gross merchandise value (GMV) approached $300 billion, while revenue reached $9 billion for the year, representing nearly 2.5x more GMV and 3x more revenue compared to 2020. Operating income surpassed $1 billion for the year, which was 4x higher than the previous peak of $269 million in 2021.

Shopify Inc. Class A Subordinate Voting Shares (NASDAQ:SHOP) has significantly strengthened its market position, achieving over 12% of the US e-commerce market share while continuing rapid growth in regions like Europe and Japan. The company’s enterprise segment showed strong momentum, with major brands like Reebok launching on the platform. International expansion remained robust, with GMV growing 33% in Q4, led by 37% growth in EMEA, while the company maintained operational discipline by managing expenses to 32% of revenues. The Shop Pay commerce component has become a compelling entry point for enterprise brands, with GMV from this component surging nearly 20x in 2024.

SHOP is one of the best economic recovery stocks to own as both analysts and hedge funds signal strong confidence in the stock – average analysts’ upside stands at a whopping 73.08%, while 64 hedge funds own the stock as of Q4 2024.