Buy 3 E-Commerce Stocks to Tap Solid Earnings Growth Potential in 2025

The Internet-Commerce space 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 and strong growth potential. Growth investors are primarily focused on stocks with aggressive earnings or revenue growth, which should propel their stock price higher in the future.

We have narrowed our search to three Internet-Commerce stocks with strong growth potential for the rest of 2025. These are: Carvana Co. CVNA, Tripadvisor Inc. TRIP and Groupon Inc. GRPN. Each of our picks carries a Zacks Rank #2 (Buy) and has a Growth Score of A or B. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The chart below shows the price performance of our three picks in the past month.

Carvana Co.

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 second-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 the ongoing enhancements in technology, processes and operational efficiency.

Carvana has an expected revenue and earnings growth rate of 32.1% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 8% over the last 30 days.

Tripadvisor Inc.

Tripadvisor has been benefiting from growth in its marketplace businesses, including Viator and TheFork. TRIP’s growing focus on app enhancements to improve pre and post-shopping experience is a key catalyst. 

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 5.7% and 11.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.8% over the last 60 days.

Groupon Inc.

Groupon is benefiting from strong growth in billings driven by growing momentum in the local category, particularly in the North American region. This has been driven by a successful hyper-local strategy of GRPN, particularly in North America, where key cities experienced significant billings growth. 

Strong momentum in GRPN’s things to do vertical has been a plus. Solid demand across GRPN’s enterprise customers has also remained a plus. International markets, excluding Italy, have been contributing well. We expect 2025 sales to grow 1.3% year over year.

Groupon has an expected revenue and earnings growth rate of 1.6% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 20% over the last seven days.

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

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