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Buy 3 Online Retailers Ahead of Expected Strong Holiday Sales in 2026

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Key Takeaways

  • Amazon benefits from international expansion, AWS growth and rising advertising revenues.
  • Wayfair gains home furnishings market share buoyed by AI, loyalty programs and logistics investments.
  • Groupon's marketplace recovery, platform upgrades and restructuring savings support its outlook.

The U.S. holiday shopping season is set to begin within the next two to three weeks. This year holiday sales are expected to be very strong. To tap this opportunity, we recommend three online retail stocks with a favorable Zacks Rank. 

These are: Amazon.com Inc. (AMZN - Free Report) , Wayfair Inc. (W - Free Report) and Groupon Inc. (GRPN - Free Report) . Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Solid Holiday Sales Forecast

The Mastercard Economics Institute/SpendingPulse insights projected U.S. retail sales (excluding automobiles and gas) between Nov. 1 and Dec. 24 to grow 5.5% year over year. This marked the highest growth since 2021. Online sales and in-store sales are forecast to increase 11% and 3.6%, respectively, year over year. 

Deloitte estimated holiday retail sales between $1.7-1.71 trillion during the November 2026 through January 2027 period. This marks 4-4.8% year-over-year Increase. Online sales during this period are projected in the range of $316.1-318.9 billion, reflecting an increase of 7.5-8.4% year over year.

Ernst & Young-Parthenon said that U.S. retail sales for the November–December 2026 holiday season are estimated to increase 5.2% year over year, its highest growth since 2021. Sales, excluding autos, gas and restaurant services, are expected to reach $1.08 trillion, up from $1.03 trillion in 2025.

The chart below shows the price performance of our three picks year to date.

Zacks Investment Research
Image Source: Zacks Investment Research

Amazon.com Inc.

Amazon.com’s continued international expansion strengthens its long-term growth profile as it deepens its footprint in high-potential overseas markets. AMZN keeps investing in cross-border logistics, faster delivery networks and localized marketplace features across Europe, Asia and Latin America, positioning it to capture rising e-commerce adoption where digital retail penetration remains comparatively low.  

AMZN’s diversification across multiple high-growth business lines creates a resilient revenue base that lowers concentration risk while widening the path to profitability. Beyond core retail, cloud computing remains a primary earnings engine, with AWS segment sales increasing 37% year over year to $42.2 billion in the second quarter of 2026. 

Advertising also keeps expanding briskly as brands direct more spend toward AMZN’s shopper data and purchase-intent signals, with advertising revenue up 26% year over year to $19.8 billion. AI integration across AMZN’s operations stands out as a durable catalyst for both efficiency gains and new revenue streams across the business.

Solid Estimate Revisions

For 2026, the Zacks Consensus Estimate currently shows revenues of $829.29 billion, suggesting an improvement of 15.7% year over year and earnings per share of $13.02, indicating an increase of 81.6% year over year. The Zacks Consensus Estimate for the current year has improved 0.1% in the last seven days.

For 2027, the Zacks Consensus Estimate currently shows revenues of $949.8 billion, suggesting an improvement of 14.5% year over year and earnings per share of $10.58, indicating a decrease of 18.7% year over year. The Zacks Consensus Estimate for the current year has improved 0.1% in the last seven days.

Wayfair Inc.

Wayfair continues to outpace the broader home furnishings market through sustained market share gains, supported by its broad product assortment, expanding logistics capabilities and initiatives such as loyalty, verified products, physical retail and specialty brands. 

W continues to leverage AI, mobile engagement and loyalty programs to improve merchandising, personalization and marketing efficiency. Mobile represented 64.1% of second-quarter orders, while revenue per active customer increased 4.2% year over year. 

W is expanding proprietary AI across product imagery, merchandising, search and design tools while broadening loyalty offerings, including a dedicated Perigold loyalty program. These investments are intended to strengthen W’s customer engagement, improve conversion and lower customer acquisition costs, supporting sustainable market share gains and profitability over the long term.

Solid Estimate Revisions

For 2026, the Zacks Consensus Estimate currently shows revenues of $13.37 billion, suggesting an improvement of 7.3% year over year and earnings per share of $2.99, indicating an increase of 15% year over year. The Zacks Consensus Estimate for the current year has improved 1.4% in the last 60 days.

For 2027, the Zacks Consensus Estimate currently shows revenues of $14.26 billion, suggesting an improvement of 6.7% year over year and earnings per share of $4.1, indicating an increase of 37% year over year. The Zacks Consensus Estimate for the current year has improved 1.2% in the last 60 days.

Groupon Inc.

Groupon’s hyperlocal marketplace offers a path to greater local supply density, but second-quarter 2026 results show that recovery remains dependent on execution. Things to Do and International Local are supporting a higher-value mix, while GRPN’s active customers increased even as unit sales declined, making purchase frequency a key test of marketplace health over time. 

GRPN’s Project Foundry is advancing platform migration, personalization, organic reach and operating efficiency, and management maintained its 2026 outlook. Positive free cash flow in the second quarter and planned restructuring savings provide support.

Solid Estimate Revisions

For 2026, the Zacks Consensus Estimate currently shows revenues of $517.75 million, suggesting an improvement of 3.9% year over year and earnings per share of -$0.14, indicating an increase of 93.2% year over year. The Zacks Consensus Estimate for the current year has improved 26.3% in the last 60 days.

For 2027, the Zacks Consensus Estimate currently shows revenues of $565.05 million, suggesting an improvement of 9.1% year over year and earnings per share of $0.95, indicating an increase of 776.2% year over year. The Zacks Consensus Estimate for the current year has improved 10.5% in the last 60 days.

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