12 Best E-Commerce Stocks to Buy According to Analysts

4. Aterian, Inc. (NASDAQ:ATER)

Analyst Upside: 277.78%

Number of Hedge Fund Holders: 3

Aterian, Inc. (NASDAQ:ATER) is a technology-enabled consumer products company that builds and acquires e-commerce brands. It sells an elaborate range of products across various categories, including kitchen appliances, home appliances, kitchenware, air quality appliances, essential oils, and many others. The company sells its products primarily in the US and derives most of its revenues from selling its offerings on Amazon. The company’s portfolio of six brands includes hOmeLabs, Pursteam, Photo Paper Direct, Healing Solutions, Mueller Living, and Squatty Potty.

Due to its outside-in marketing and sales strategy, Aterian, Inc. (NASDAQ:ATER) is continuing to see strength in its marketing efficiencies. It is focusing its efforts on its reduced seller account footprint and core SKUs. The company is also seeing better-than-anticipated results in driving outside traffic to Amazon through its marketing initiatives, which are benefiting its product listing rankings and conversion metrics.

The company delivered on its net revenue and adjusted EBITDA goals in fiscal Q3 2024. This positive performance was attributed to its humidifiers from hOmeLabs, Pursteam steam products, and the impact of cost-cutting exercises implemented in fiscal Q1 2024. Its Pursteam brand is gaining popularity on Amazon, especially its Steam Irons and Steam Mops.