In a recent publication, we shared insights into the "11 Best Internet Retail Stocks to Buy According to Analysts." This article will specifically examine where Wayfair Inc. (NYSE: W) ranks among other leading internet retail stocks that analysts recommend for purchase.

March showed a notable increase in retail sales, with a reported rise of 1.4%, as indicated by CNBC on April 16. This figure not only surpassed expectations but also came as a relief amidst a turbulent stock market characterized by fluctuations due to trade policies and tariffs that have been influencing investor sentiment since early April.

Prior to this report, market analysts had predicted a more modest growth of 1.2% month-over-month, raising the stakes for the March retail sales data, which was seen as a critical indicator of economic health. Notably, CNBC highlighted that this sales report could significantly affect investor positioning and overall market confidence.

According to the report, the primary driver behind this unexpected growth was a 'pull-forward' of consumer spending. Many consumers seemed eager to make purchases ahead of anticipated price increases triggered by tariffs, reflecting a proactive approach to managing their finances in uncertain times. Jay Woods, chief global strategist at Freedom Capital Markets, shared his insights on this development, suggesting that retail stocks might experience a short-term bounce.

Woods stated, Some of these names have gotten way too far ahead of themselves on the downside that bounces are natural. Theyve gotten beaten down and mean reversion could lead to a nice rally over the coming days. Such optimism among analysts could indeed point to a potential recovery for these stocks, especially in light of the strong retail sales report.

In a similar vein, Callie Cox, chief market strategist of Ritholtz Wealth Management, echoed this sentiment by mentioning that a positive retail sales report could lead to a rebound in consumer discretionary stocks. She remarked, Consumer Discretionary stocks have been hit so hard that they may be more susceptible to a relief rally on the back of a retail sales report that doesnt show the economy is falling apart.

The exceeding expectations of the retail sales report have opened the door for these analyst predictions to possibly come to fruition. Consequently, we will delve into the curated list of the 11 best internet retail stocks that analysts suggest investing in.

Our Methodology

To compile this list, we meticulously sifted through stock screeners, financial media reports, and Exchange-Traded Funds (ETFs) to identify a total of 30 internet retail stocks. From this larger pool, we selected the top 11 stocks that present the highest upside potential as assessed by analysts as of April 17, 2025. Additionally, we noted the number of hedge fund holders for each stock as of Q4 2024, using data sourced from Insider Monkeys database.

But why do we focus on the stocks favored by hedge funds? The answer is straightforward: our research indicates that mimicking the top stock picks of successful hedge funds can lead to significant market outperformance. Our quarterly newsletter, which strategically selects 14 small-cap and large-cap stocks each quarter, has achieved a remarkable 373.4% return since May 2014, outperforming its benchmark by an impressive 218 percentage points. For more details on this performance, feel free to check here.