Whether it’s online shopping or social media, the power of the world is driving online consumer businesses. But it’s not all sunshine and rainbows as consumer purchasing power can make or break demand. Unfortunately, the market seems to believe that stormy weather is ahead as the industry has shed 30.3% over the past six months. This performance was significantly worse than the S&P 500’s 2.1% decline.
Top companies can generate earnings growth under any circumstances, however, and our goal at StockStory is to help you find them. In this regard, here are three stocks that are firmly at the top of our wish list.
Amazon (AMZN)
Market Cap: $2.25 trillion
Founded by Jeff Bezos after he left his job as a stockbroker at DE Shaw, Amazon (NASDAQ:AMZN) is the world’s largest online retailer and provider of cloud computing services.
Why Are We Positive on AMZN?
- Amazon changed the way consumers shop. This isn’t the only drag on its revenue growth, as its highly profitable AWS division has also posted a higher pace.
- The company’s high-level revenue growth coupled with modest performance in its past infrastructure investments has led to high EPS growth over the years.
- Despite its dominance, Amazon’s strong e-commerce business means its profits are lower than its tech peers. Can the company pull it off, or are we hitting the ceiling?
At $209.74 per share, Amazon trades at 27.5x forward earnings. Is it time to start work? See for yourself in our comprehensive research report, free of charge.
Working (UPWK)
Market Value: $1.43 billion
Founded in 2013 from the merger of Elance and oDesk, Upwork (NASDAQ: UPWK) is an online platform where businesses and freelancers connect to get work done.
Why is UPWK Unique?
- A 10.1% annual increase in gross revenue per customer over the past two years shows its platform is performing well with strong users.
- Performance over the past three years shows its growing sales were more profitable, as its annual earnings growth of 197% exceeds its profits.
- A strong cash flow of 25.2% enables it to reinvest or return money regularly, and its improved cash flow means it is becoming a very profitable business.
Upwork’s stock price of $11 implies a valuation multiple of 5.1x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
CarGurus (CARG)
Market Value: $3.17 billion
Bringing transparency to the sometimes invisible process, CarGurus (NASDAQ:CARG) is a digital marketplace where car dealers can connect with potential customers and where car buyers can browse, buy and get financing.
Why do we love CARG?
- The platform’s high performance and low service costs lead to a high overall efficiency of 86%
- Earnings per share grew 26.2% annually over the past three years and outperformed its peers.
- Free cash flow has increased 14.9 percent over the past few years, giving the company more money to invest or return to shareholders.
CarGurus trades at $33.32 per share, or 9.7x forward EV/EBITDA. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High quality stocks for all Market conditions
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Stocks that made our list in 2020 include well-known names like Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like once-micro-cap company Kadant (+351% five-year return). Find your next big deal with StockStory today.
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