Rising E-Commerce Sales May Spark a Stock Breakout—What to Buy

Core Viewpoint - The retail sector is experiencing significant growth, particularly in E-commerce, presenting investment opportunities in related areas such as online payment systems and logistics [1][2]. E-commerce Growth - E-commerce companies are expected to see a breakout in activity, which will positively impact online payment platforms and logistics stocks [2]. - PayPal Holdings Inc. is highlighted as a key player in the payment processing ecosystem, with institutional investors showing confidence by increasing their stakes [3][4]. PayPal Insights - PayPal's stock is forecasted to reach $90.03 within 12 months, indicating a potential upside of 28.27$70.19 [5]. - Institutional investments in PayPal have surged, with $5.5 billion entering the stock over the past quarter, reflecting strong confidence in its future performance [5][6]. - The earnings per share (EPS) forecast for PayPal suggests a growth rate of 9.2$1.30 in Q4 2025 [7]. United Parcel Service (UPS) Analysis - Analysts from Citigroup maintain a Buy rating for United Parcel Service, with a target price of $149, suggesting a potential increase of 26.4$138.09 in 12 months, representing a 19.81% upside [10]. - UPS offers a dividend of $6.56 per share, translating to an annualized yield of 5.6$301.67 within 12 months, indicating a potential upside of 31.02% [13]. - The EPS forecast for FedEx suggests a significant increase of 37.5%, with an expected EPS of $5.57 in Q3 2025 [13][14]. - FedEx is also trading at a premium P/E ratio of 15.6x, reflecting market confidence in its growth potential linked to E-commerce trends [12].