The Internet-Commerce has been flourishing since the pandemic era, buoyed by the convenience of online shopping particularly true of Gen-Z. Many of these buyers have grown up on the Internet and are accustomed to a high level of digitization.

Internet - Commerce continues to evolve as the technologies driving it progress. On the one hand, there are increasingly powerful and capable user devices, and on the other are sophisticated, artificial intelligence (AI)-enabled software platforms facilitating transactions more capable of delivering user satisfaction.

At this stage, it will be prudent to invest in Inter-Commerce (ECom) stocks with a favorable Zacks Rank. Five such stocks are Carvana Co. CVNA, eBay Inc. EBAY, Tripadvisor Inc. TRIP, Chewy Inc. CHWY and Alibaba Group Holding Ltd. BABA. 

Ecom Industry Thriving

Ecom differentiation comes from better technology for improved showcasing, easier navigation and payment, speedier delivery and returns, brand building, comparison shopping, loyalty, etc., as well as more shipping options, which generally tip the scales in favor of larger players. AI, as used by big online retailers already decides how competitive a player is. Therefore, harnessing big data has become imperative for survival.

Another notable trend is a subscription format for repeat-use items. This makes it easier for the consumer to order and for the retailer to plan. Retailers usually offer some discount to consumers choosing this option, which makes it all the more attractive. The trend is expected to expand going forward as both tangible and intangible commodities and low-value and high-value items are increasingly sold 'as-a-service.'

A trend that Gen-Z is popularizing is social commerce. Social commerce means the ability to discover, research, buy and checkout on a social media platform, often and increasingly more so, through influencers. Brands usually have store fronts on these platforms where influencers also discuss their products, thus driving traffic to them.

Our Top Picks 

We have narrowed our search to five Internet Commerce stocks with strong potential for the rest of 2025. These stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

The chart below shows the price performance of our five picks year to date.

Image Source: Zacks Investment Research

Carvana Co.

Zacks Rank #2 Carvana’s acquisition of ADESA’s U.S. operations has strengthened its logistics network, auction capabilities and reconditioning processes. By utilizing ADESA’s infrastructure, CVNA can scale refurbishment operations, improving both the quality and volume of vehicles prepared for resale. 

CVNA anticipates sequential year-over-year growth in retail unit sales for first-quarter 2025. Despite being the nation’s second-largest used car retailer, CVNA holds only a 1% share of the highly fragmented U.S. automotive retail market, signaling substantial expansion potential as online car buying gains traction. CVNA’s emphasis on driving significant adjusted EBITDA per unit is reinforced by ongoing enhancements in technology, processes and operational efficiency.

Carvana has an expected revenue and earnings growth rate of 23.6% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3% over the last 30 days.

eBay Inc.

Zacks Rank #2 eBay has been witnessing growth driven by Focus Categories and geo-specific investments. EBAY also benefited from the solid momentum across advertising offerings. The growing adoption of first-party advertising products contributed well. Increasing demand for refurbished products has acted as a tailwind for EBAY. 

Strength in EBAY’s financial services and managed payment offerings was a plus. EBAY expanded its portfolio by introducing proprietary large language models, improving search efficacy and enhancing productivity in engineering and customer service.

eBay has an expected revenue and earnings growth rate of 1.7% and 8.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.1% over the last 60 days.

Tripadvisor Inc.

Zacks Rank #2 Tripadvisor is gaining from solid momentum across the Viator and TheFork segments. TRIP’s growing focus on app enhancements to improve pre and post-shopping experience remains a positive. 

Strengthening marketing efficiencies and product innovation are other positives. TRIP’s deepening focus toward delivering generative AI-driven travel booking experience is contributing well to its top-line growth.

TRIP has an expected revenue and earnings growth rate of 4% and 7.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.7% over the last 60 days.

Chewy Inc.

Zacks Rank #2 Chewy is engaged in the pure-play e-commerce business in the United States. CHWY provides pet food and treats, pet supplies and pet medications, and other pet-health products, as well as pet services for dogs, cats, fish, birds, small pets, horses, and reptiles through its www.chewy.com retail website, as well as its mobile applications.

CHWY has an expected revenue and earnings growth rate of 4.5% and 18.3%, respectively, for the current year (ending January 2026). The Zacks Consensus Estimate for current-year earnings has improved 5.1% over the last 30 days.

Alibaba Group Holding Ltd.

Zacks Rank #1 Alibaba’s recent performance benefited from the monetization of Taobao and Tmall Group, cloud businesses and AI-integrated products. BABA is riding on strong momentum in its international commerce retail business, driven by strength in AliExpress’ Choice. 

Growing international commerce wholesale business, thanks to strength in cross-border-related value-added services, is a tailwind for BABA. Expanding China's wholesale commerce business is a positive. Robust local consumer services and Cainiao logistics services are further driving BABA’s top-line growth.

BABA has an expected revenue and earnings growth rate of 4.5% and 24.4%, respectively, for the current year (ending March 2026). The Zacks Consensus Estimate for current-year earnings has improved 1.1% over the last 30 days.

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

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