E-commerce industry thriving with strong growth, ACV Auctions, Amazon, and JD.com are top stock picks

From Nasdaq: 2025-01-28 09:51:00

The e-commerce industry is thriving, with 7.4% growth in Q3 2024 compared to the previous year. E-commerce sales accounted for 16.2% of total U.S. retail sales, driven by convenience and Gen-Z shoppers influenced by social media trends and advanced technology like AR/VR. The 2024 holiday season saw strong sales due to steep discounts, mobile shopping, and AI-powered shopping assistants.

ACV Auctions, Amazon, and JD.com are top stock picks for the e-commerce industry this season, offering growth potential. ACV Auctions connects wholesale vehicle buyers and sellers, with estimated growth of 160% in 2024 and 517% in 2025. Amazon dominates the online marketplace and AWS sector, with double-digit revenue and earnings growth expected in 2024 and 2025. JD.com, a Beijing-based ecommerce platform, continues to see revenue and earnings growth driven by improved consumer sentiments and strong business momentum.

The Zacks Industry Rank for Internet – Commerce is #70, indicating positive near-term prospects. The industry has outperformed the broader sector and S&P 500, with collective gains of 43.5% over the past year. However, the industry is currently overvalued, trading at a premium to the S&P 500 and the retail sector. Investors should carefully consider stock picks in this industry based on valuation.

Analysts are optimistic about the growth potential of e-commerce stocks like ACV Auctions, Amazon, and JD.com, with estimated earnings growth in 2024 and 2025. These stocks have shown strong performance over the past year, with ACV Auctions up 54%, Amazon up 45.6%, and JD.com up 73.6%. Consider these stocks for potential investment opportunities in the thriving e-commerce industry.



Read more at Nasdaq: Zacks Industry Outlook Highlights ACV Auctions, Amazon and JD.com