We recently published a list of 11 Best Internet Retail Stocks to Buy According to Analysts. In this article, we are going to take a look at where Wayfair Inc. (NYSE:W) stands against other best internet retail stocks to buy according to analysts.
Retail Sales Rise in March Amid Volatile Stock Market
Trade policies and tariffs have dominated the stock market since the beginning of April, resulting in volatility and uncertainty. However, CNBC reported on April 16 that retail sales rose 1.4% in March, surpassing expectations. CNBC reported earlier on April 15 that the March retail sales report had the potential to impact investor positioning and confidence. According to Dow Jones, economists and experts anticipated a 1.2% month-over-month growth.
READ ALSO: 15 Best Blue Chip Stocks to Buy According to Billionaires and Top 10 Restaurant Stocks to Buy Under $20.
CNBC reported that the primary catalyst for this growth is a pull-forward of consumer spending to get ahead of increased good prices brought about by tariffs. It also reported that Freedom Capital Markets chief global strategist Jay Woods opined that retail stocks could undergo a short-term bounce if the retail sales report were in line or better than expected. He said:
“Some of these names have gotten way too far ahead of themselves on the downside that bounces are natural. They’ve gotten beaten down and mean reversion could lead to a nice rally over the coming days.”
Callie Cox, chief market strategist of Ritholtz Wealth Management, expressed similar sentiments, saying a strong retail sales report could potentially lead to a rise in consumer discretionary stocks.
“Consumer Discretionary stocks have been hit so hard that they may be more susceptible to a relief rally on the back of a retail sales report that doesn’t show the economy is falling apart,” said Cox.
With the retail sales report exceeding expectations, these analyst opinions could potentially come true. So let’s look at the 11 best internet retail stocks to buy according to analysts.
Our Methodology
We sifted through stock screeners, financial media reports, and ETFs to compile a list of 30 internet retail stocks and chose the top 11 with the highest analyst upside potential as of April 17, 2025. We also added the number of hedge fund holders for each stock as of Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is ordered in ascending order of analyst upside.
Why are we interested in the stocks that hedge funds pile into? 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A family selecting a wood and wire closet organization in a home improvement store.
Wayfair Inc. (NYSE:W)
Analyst Upside: 86.95%
Number of Hedge Fund Holders: 49
Wayfair Inc. (NYSE:W) offers a range of decor, furniture, housewares, and home improvement products through its e-commerce platform. Its family of brands includes Birch Lane, Wayfair, AllModern, Joss & Main, Perigold, and Wayfair Professional. The company also offers products under its house brands, such as Mercury Row and Three Posts. Its operations are divided into US and International segments.
In a report released on April 14, Youssef Squali from Truist Financial maintained a Buy rating on Wayfair Inc. (NYSE:W), setting a $36 price target. Analysts are also bullish on the stock, as it is currently at its strongest balance sheet position in many years. It paid a significant portion of its 2025 and 2026 upcoming convertible maturities at an attractive discount and holds around $2 billion of total liquidity.
Its Q4 2024 results also showed optimistic signs, with net revenue showing positive year-over-year growth. This was attributed to notable performance in its US segment, which rose by over 1% in the quarter. Wayfair Inc.’s (NYSE:W) positive results allowed it to drive $100 million of adjusted EBITDA in fiscal Q4 2024, and deliver on its goal of around 50% year-over-year dollar growth for 2024. The company’s solid financial performance allowed it to tap into the high-yield markets, bolstering its capital structure.
Overall, W ranks 5th on our list of the best internet retail stocks to buy for 2025. While we acknowledge the potential for W as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than W but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
