In this article, we will look at the 12 Best E-Commerce Stocks to Buy According to Analysts.
The E-Commerce Sector and the Shift to Mobile
According to a report by Forbes, the e-commerce industry is expected to grow its valuation from $6.3 trillion in 2024 to $7.9 trillion by 2027. In 2027, 23% of retail purchases are expected to be made online, up from 20.1% in 2024.
American consumers are showing an increasing inclination toward e-commerce and online shopping. On December 26, Michael Zakkour, 5 New Digital founder, appeared on ‘Squawk Box’ to discuss the rise of mobile e-commerce sales, among other things. He said that roughly 25% of all holiday sales happened online in the 2024 holiday shopping season, which translates to a significant year-over-year increase. Black Friday was up 10% online year-on-year, while Cyber Monday was up 13.1%. These numbers highlight that the online sector has grown its share of the pie. Mastercard’s survey of the holiday shopping season further showed that online shopping grew 6.7% in 2024 from a year ago.
Mobiles are a becoming dominant force in this domain. Zakkour said that around 40% of all sales in e-commerce happened on mobiles. He predicted that this number is bound for a significant increase, with around 70% of all e-commerce sales expected to happen on mobiles next year. Zakkour warned that if brands or retailers do not shift their attention to optimizing their businesses for mobile, they will likely have difficulty getting through to consumers next year.
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Trump’s Tariffs: What Do They Mean for the E-commerce Sector?
US President Donald Trump recently announced significant tariffs on the country’s three biggest trading partners: China, Mexico, and Canada. Mexico and Canada will face 25% duties on exports to the United States, while Chinese goods will face a lower number of 10%. Canada has already responded to Trump’s tariffs with retaliatory tariffs of 25% against $155 billion of US goods, according to CNBC.
According to analysts at Morgan Stanley, Chinese companies are among the entities facing the highest risk from these tariffs and the consequent changes in access to the US market. Widely popular China-linked online shopping platforms such as AliExpress, Shein, and Temu may be hit hard by the effects of these tariffs. This is primarily because President Trump has halted a trade exemption called “de minimis,” which previously allowed the duty-free shipment of packages worth less than $800 into the US.
As per claims by US officials, this exemption provided ground for Chinese e-commerce companies to undercut their competition. They also brought to light safety concerns due to the “minimal documentation and inspection” of these imports. According to US Customs and Border Protection Agency statistics, around 1.3 billion “de minimis” shipments were processed in the United States in 2024 alone.
Without “de minimis,” low-cost and high-volume products from online Chinese retailers will face taxes, which may increase the end price of the items, ultimately decreasing their demand.
With these trends in view, let’s look at the 12 best e-commerce stocks to buy according to analysts.
Photo by CardMapr.nl on Unsplash
Our Methodology
We sifted through stock screeners, online rankings, and ETFs to compile a list of 20 e-commerce stocks. We then selected the top 12 stocks with the highest analyst upside potential as of February 3rd, 2024. We also added the number of hedge fund holders for each company, and sourced hedge fund data from Insider Monkey’s database. The stocks are sorted in ascending order of their analyst upside potential.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
12 Best E-Commerce Stocks to Buy According to Analysts
12. PDD Holdings Inc. (NASDAQ:PDD)
Analyst Upside: 33.70%
Number of Hedge Fund Holders: 78
PDD Holdings Inc. (NASDAQ:PDD) is a Chinese multinational online commerce group and retailer that owns and operates a range of diverse businesses. It also has a strong logistics, sourcing, and fulfillment capabilities network that supports its operations. The company owns Pinduoduo, a popular online commerce platform in China, and also runs the fast-growing e-commerce marketplace Temu. Temu now operates in more than 50 countries worldwide.
Analysts are bullish on PDD Holdings Inc. (NASDAQ:PDD) and expect it to grow at a compound annual growth rate of 38% to 2026, driven by market share gains in China. Its continued expansion into international markets through the Temu platform is anticipated to accelerate and support this growth. Temu connects Chinese sellers and overseas buyers, allowing PDD Holdings Inc. (NASDAQ:PDD) to diversify its revenue base. It also holds a competitive advantage due to its group-buying model from small and medium businesses, which helps its listings to be cheaper than its competitors.
PDD Holdings Inc. (NASDAQ:PDD) is also focused on a high-quality development strategy and has been actively optimizing its platform ecosystem to deliver impactful results over the long run. This strategy has helped the company report impressive financial results. It reported a 44% increase in revenue in fiscal Q3 2024, and its operating profit in the quarter also surged 46% year-over-year.
GreenWood Investors stated the following regarding PDD Holdings Inc. (NASDAQ:PDD) in its Q4 2024 investor letter:
“Aside from transitory foreign exchange translation losses (as opposed to trading losses), the two other notable detractors from our portfolio were MEI Pharma and PDD Holdings Inc. (NASDAQ:PDD) in 2024.
PDD Holdings founder Colin Huang is who inspired us to “run 3x faster,” as the relentless corporate culture of PDD has built an e-commerce company with roughly the same GMV (gross merchandise value) of Amazon in one-third the time it took Amazon to build itself. Shares reacted negatively when the company decided to reinvest its record margins into even faster growth and creating a healthier supplier ecosystem. As it looks set to create a second Amazon with its international site Temu, we are highly attracted to the opportunity. Sales are growing 4x faster than Amazon’s, yet shares are priced at less than a quarter of the Amazon earnings multiple.
PDD is a perfect example of why we want to look outside of the “Big Ten” companies that are nearly a third of global market indices. We would not want to compete with the demanding corporate culture of PDD and Temu. Its operating model is relentless at identifying efficiency throughout the manufacturing and selling supply chain. Not only is it a more formidable competitor than Amazon, and growing much faster, but the valuation is 4x more attractive than Amazon’s…” (Click here to read the full text)
11. BigCommerce Holdings, Inc. (NASDAQ:BIGC)
Analyst Upside: 39.57%
Number of Hedge Fund Holders: 20
BigCommerce Holdings, Inc. (NASDAQ:BIGC) develops software-as-a-service (SaaS) technology solutions and has a SaaS platform that enables, launches, and scales e-commerce operations. It powers the branded e-commerce stores of its customers and their cross-channel connections to social networks, online marketplaces, and offline point-of-sale systems. The company’s operations span various business lines, including small, mid-market, and enterprise businesses.
BigCommerce Holdings, Inc. (NASDAQ:BIGC) reported just under $84 million in total revenue in fiscal Q3 2024, reflecting a 7% growth year-over-year. Its subscription revenue also grew by 7% yearly to around $63 million, which shows its continued popularity. The company is focusing on driving efficient revenue growth and is significantly reducing investments in underperforming channels. It also has plans to nearly double its quota-carrying sales capacity in fiscal 2025.
In addition, BigCommerce Holdings, Inc. (NASDAQ:BIGC) is focusing on driving operating leverage. It has made changes in leadership to support these goals, bringing industry veterans to key leadership roles to align the company with its strategic objectives. It takes the 11th spot on our list of the 12 best e-commerce stocks to buy according to analysts.
10. Qurate Retail, Inc. (NASDAQ:QRTEA)
Analyst Upside: 41.60%
Number of Hedge Fund Holders: 17
Qurate Retail, Inc. (NASDAQ:QRTEA) engages in video and online commerce industries and operates through three segments: QxH, QVC International, and CBI. The QxH segment sells a range of consumer products in the US through the Internet and televised shopping programs, while the QVC International segment does the same in international markets. The CBI segment manages a range of apparel and home brands in the US.
Fiscal Q3 2024 was a challenging quarter for Qurate Retail, Inc. (NASDAQ:QRTEA), primarily due to the macroeconomic climate and events such as political conventions and the Olympics affecting consumer behavior and programming viewership. However, the company managed to hold its consolidated gross margin flat due to reduced operating expenses and disciplined cost management.
It is also nearing the end of its multi-year Project Athens initiative, which focuses on margin and free cash flow. Qurate Retail, Inc. (NASDAQ:QRTEA) is now transitioning to the next stage of its strategic growth initiatives and is enhancing its capabilities to reach aggregated audiences on streaming and social platforms.
9. D Market Elektronik Hizmetler ve Ticaret AS (NASDAQ:HEPS)
Analyst Upside: 45.90%
Number of Hedge Fund Holders: 7
Based in Turkey, D Market Elektronik Hizmetler ve Ticaret AS (NASDAQ:HEPS) provides online retail and e-commerce services. Its platform has an elaborate consumer goods collection spanning over 50 million product types in around 40 categories. Its products include apparel, electronics, white goods, accessories, stationery products, home textiles, and others.
Analysts are bullish on the stock due to its continued popularity in Turkey, primarily due to its range of affordability, speed of delivery, and market reputation. Enrollment in the company’s Hepsiburada Premium program corroborates this, as it reached approximately 3.7 million members by the end of November.
D Market Elektronik Hizmetler ve Ticaret AS (NASDAQ:HEPS) also grew its active customers by 233,000 to 12.3 million in fiscal Q3 2024. Its growing range of lending solutions and comprehensive affordability suite give it a competitive advantage in the Turkish e-commerce sector. The company ranks ninth on our list.
8. ATRenew Inc (NYSE:RERE)
Analyst Upside: 50.94%
Number of Hedge Fund Holders: 12
Formerly known as AiHuiShou International Co Ltd, ATRenew Inc (NYSE:RERE) is a Chinese consumer electronics transactions and services platform. Its main business includes selling products such as laptops, mobile phones, drones, digital cameras, and other electronic digital products through its online platforms and some offline stores. The company also provides services to third-party merchants for product sales through its platforms.
The company’s revenue increased by 24.4% in fiscal Q3 2024, reflecting its growing popularity. Its product revenue increased by 25.6% year over year. ATRenew Inc.’s (NYSE:RERE) core recycling business is performing well in Mainland China, with revenue increasing by over 30% year-over-year.
The company’s multicategory recycling business also experienced a significant 270% year-over-year increase in transaction value. In addition, ATRenew Inc.’s (NYSE:RERE) recycling and trading business through JD.com soared by 40% in fiscal Q3 2024. Analysts are thus bullish on the stock due to its strong fundamentals and growing popularity. It takes the eighth spot on our list of the 12 best e-commerce stocks to buy according to analysts.
7. Yunji Inc. (NASDAQ:YJ)
Analyst Upside: 81.82%
Number of Hedge Fund Holders: N/A
Based in China, Yunji Inc. (NASDAQ:YJ) is involved in the social e-commerce business and conducts its operations primarily through a membership-based model. It offers products across a range of categories, catering to the daily needs of its customers. It distributes its products mainly through the Yunji Application app and web pages available on major social platforms in China, including WeChat, QQ, and Weibo.
Its total revenues for fiscal Q3 2024 amounted to around $12.4 million, lower than last year. A significant factor behind this decrease was the company’s continued strategy to refine its product selection across all categories and optimize its selection of merchants and suppliers. This had a near-term effect on its sales. However, analysts are bullish on the stock despite these short-term headwinds, primarily due to Yunji Inc.’s (NASDAQ:YJ) strong portfolio of healthy and organic food products. It has a repeat purchase rate of 72.7% as of the 12 months that ended on September 30, 2024, reflecting its popularity.
The company is further strengthening its portfolio through strategic collaborations with premium suppliers. Yunji Inc. (NASDAQ:YJ) also has plans to continue exercising prudent capital allocation and expense management strategies while optimizing operational efficiency to create long-term value for its stakeholders. The company ranks seventh on our list of the top e-commerce stocks to buy according to analysts.
6. Solo Brands, Inc. (NYSE:DTC)
Analyst Upside: 104.08%
Number of Hedge Fund Holders: 8
Solo Brands, Inc. (NYSE:DTC) sells online outdoor products such as Solo Stove firepits, accessories, stoves, portable kayaks, paddle boards, and more. Its portfolio of brands develops and markets products directly to customers, primarily through e-commerce channels.
Despite continued challenging macroeconomic conditions, the company delivered total revenues of $94.1 million in fiscal Q3 2024, with its overall fiscal Q3 2024 results aligned with its expectations.
Solo Brands, Inc. (NYSE:DTC) is also seeing continued momentum from its retail partners. The company is taking steps to address factors affecting its direct-to-consumer channel, and analysts are bullish on Solo Brands, Inc. (NYSE:DTC) due to its potential. It has a new leadership team in place and is supported by strong brands and healthy gross margins. The company is also rolling out new and innovative products to increase its relevance and popularity, including its partnership with the NFL to introduce Solo Stove and Chubbies NFL-branded products.
5. 1stdibs.com, Inc. (NASDAQ:DIBS)
Analyst Upside: 105.66%
Number of Hedge Fund Holders: 11
1stdibs.com, Inc. (NASDAQ:DIBS) operates an online interior design, fashion, and home decorations marketplace. The company provides access to a global community of buyers and sellers to facilitate e-commerce sales. Its offerings include a range of antique, vintage, and contemporary furniture, fashion items, art, watches, jewelry, and more.
Sellers use the company’s platform to build their digital market presence, manage their inventory, and communicate with buyers directly. The company is headquartered in New York and operates under two business units: 1stdibs and Design Manager. 1stdibs.com, Inc. (NASDAQ:DIBS) has around 6.3 million users and approximately 1.7 million listings.
Net revenue for the company was $21.2 million in fiscal Q3 2024, reflecting a 3% year-over-year growth and progress across key operational metrics. It had two consecutive quarters of growth in orders and revenue, along with sequential improvement for active buyers.
The company is focusing on lowering the growth threshold necessary to attain operating leverage. 1stdibs.com, Inc.’s (NASDAQ:DIBS) preliminary fiscal 2025 plan targets generating operating leverage at mid-single-digit revenue growth. The company ranks fifth on our list of the 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.
3. iPower, Inc. (NASDAQ:IPW)
Analyst Upside: 283.60%
Number of Hedge Fund Holders: 3
iPower, Inc. (NASDAQ:IPW) is a data-driven company in the online retail and e-commerce industry. It sells a range of garden, consumer home, in-home farming, wellbeing, and pet products through a portfolio of brands, including Simple Deluxe, iPOWER, FluffyDream, HealSmart, Flourish, iFarm, and more. Its product offerings include nutrient and fertilizer delivery systems, advanced heating, ventilation, air conditioning (HVAC) systems, heaters, water pumps, commercial fans, chairs, and more.
The company experienced a decrease in revenue in fiscal Q1 2025, primarily due to increased promotional activity in the year-ago period regarding selling down inventory. However, the company maintained solid momentum despite this environment due to its supply chain business and optimization initiatives. iPower, Inc. (NASDAQ:IPW) advanced its strategic plan by investing in key business areas and expanding its sales channels by launching on AliExpress. It is also strengthening its presence on newer channels like Temu and TikTok Shop.
iPower, Inc. (NASDAQ:IPW) also announced the launch of its SaaS platform at the end of fiscal Q3 2024, which is anticipated to boost supplier interactions, streamline its operations, and effectively align partners with market demands. Analysts believe the company’s diversified product portfolio and e-commerce advantage may help the company drive revenue growth in the upcoming quarters. It ranks third on our list of the 12 best e-commerce stocks to buy according to analysts.
2. Newegg Commerce, Inc. (NASDAQ:NEGG)
Analyst Upside: 560.79%
Number of Hedge Fund Holders: 1
Newegg Commerce, Inc. (NASDAQ:NEGG) is an e-commerce company that offers an online marketplace platform for consumer electronics, computer components, smart home and gaming products, and entertainment. It also provides third-party logistics services across the globe. The company experienced headwinds due to consumer spending shifts, high interest rates, and inflation in the first half of 2024.
However, it is actively working to adjust its company’s size and structure to improve its revenue growth. Newegg Commerce, Inc. (NASDAQ:NEGG) is also focused on cash balance and inventory, which it maintained at around $49.7 million and $132 million in the first half of fiscal 2024, respectively.
The company expects a rebound in sales in the coming months. In addition, the increasing affordability, availability, and capabilities of AI-powered PCs are anticipated to boost its long-term outlook for core computer sales. The company ranks second on our list.
1. Mogu, Inc. (NYSE:MOGU)
Analyst Upside: 1,062.96%
Number of Hedge Fund Holders: 3
Headquartered in China, Mogu, Inc. (NYSE:MOGU) is an online lifestyle and fashion destination platform that caters to beauty and fashion needs by offering medical beauty products, food, personal care items, beauty products, and apparel. Its platform features short-form videos, articles, photographs, live video broadcasts, and more. The company also offers users and merchants online marketing, technology solutions, financing, and other related services.
The company experienced headwinds due to increased competition in China’s retail landscape, which affected its sales. However, it has been launching targeted marketing initiatives focusing on high-value members to increase retention rates and average revenue per user (ARPU). It is also leveraging its supply chain resources and service capabilities to actively explore new business opportunities on other platforms.
Mogu, Inc. (NYSE:MOGU) plans to focus on cost reduction and efficiency enhancements in the future while simultaneously looking for revenue growth opportunities. Analysts are bullish on the stock as these initiatives are expected to contribute to the company’s sustainable growth and overall financial resilience.
Overall, MOGU ranks first among the 12 best e-commerce stocks to buy according to analysts. While we acknowledge the potential of e-commerce stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MOGU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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