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

Industry Overview - The Internet-Commerce space has seen significant growth since the pandemic, particularly among Gen-Z consumers who are accustomed to online shopping and high levels of digitization [1] - The evolution of Internet-Commerce is driven by advancements in user devices and sophisticated AI-enabled software platforms that enhance transaction capabilities and user satisfaction [2] Investment Opportunities - It is advisable to invest in Internet-Commerce stocks with a favorable Zacks Rank and strong growth potential, focusing on those with aggressive earnings or revenue growth [3] - Three Internet-Commerce stocks identified for strong growth potential through 2025 are Carvana Co. (CVNA), Tripadvisor Inc. (TRIP), and Groupon Inc. (GRPN), all carrying a Zacks Rank 2 (Buy) and a Growth Score of A or B [4] Company Insights: Carvana Co. (CVNA) - Carvana's acquisition of ADESA's U.S. operations has enhanced its logistics network, auction capabilities, and reconditioning processes, allowing for improved vehicle refurbishment [7] - CVNA anticipates year-over-year growth in retail unit sales for Q2 2025, holding only a 1% share of the fragmented U.S. automotive retail market, indicating substantial expansion potential [8] - The expected revenue and earnings growth rates for CVNA are 32.1% and over 100%, respectively, with an 8% improvement in the Zacks Consensus Estimate for current-year earnings over the last 30 days [9] Company Insights: Tripadvisor Inc. (TRIP) - Tripadvisor is experiencing growth in its marketplace businesses, particularly Viator and TheFork, with a focus on app enhancements and generative AI-driven travel booking experiences contributing to top-line growth [11] - The expected revenue and earnings growth rates for TRIP are 5.7% and 11.5%, respectively, with a 5.8% improvement in the Zacks Consensus Estimate for current-year earnings over the last 60 days [12] Company Insights: Groupon Inc. (GRPN) - Groupon is benefiting from strong growth in billings, particularly in the North American local category, driven by a successful hyper-local strategy [13] - The expected revenue and earnings growth rates for GRPN are 1.6% and over 100%, respectively, with a 20% improvement in the Zacks Consensus Estimate for current-year earnings over the last seven days [14]