In this article, we will look at the 5 Best Retail Stocks with Huge Upside Potential. For a deeper discussion and an extended list, please see 10 Best Retail Stocks with Huge Upside Potential.
5. Wayfair Inc. (NYSE:W)
Wayfair Inc. (NYSE:W) is one of the 10 best retail stocks with huge upside potential.
On February 26, Citi reduced the firm’s price target on Wayfair Inc. (NYSE:W) from $135 to $110. The firm maintained its Buy rating on the shares, which still offer an upside potential of almost 40% despite the downward revision.
Citi revised its projections following the company’s fourth-quarter announcement, emphasizing home goods sector volatility as a key reason for the reduced price target. However, Citi acknowledged Wayfair’s better-than-expected first-quarter guidance, which indicates the company’s strong ability to capture market share and expand margins.
On February 24, David Bellinger from Mizuho reduced the price target on Wayfair Inc. (NYSE:W) from $130 to $110, implying an upside of almost 40%. The analyst maintained his Outperform rating on the stock.
The revision came after Wayfair Inc. (NYSE:W) released its fourth quarter report. The company did not give specific numbers for Q1-to-date trends, but according to the analyst the environment is “pretty soft”.
Wayfair Inc. (NYSE:W) is an e-commerce platform that runs a technology-led online marketplace. With an emphasis on home housewares, furniture and décor, it offers products under its own brands i.e. Three Posts and Mercury Row. The company offers various sites to facilitate consumers such as Wayfair, Joss & Main, AllModern, Birch Lane, Perigold, and Wayfair Professional.
4. Carvana Co. (NYSE:CVNA)
Carvana Co. (NYSE:CVNA) is one of the 10 best retail stocks with huge upside potential.
On March 2, Needham added Carvana Co. (NYSE:CVNA) to its Conviction List, replacing Aurora Innovation (AUR). The firm maintained its Buy rating on the stock, with a $500 target price, resulting in an upside of more than 58%.
Needham notes that retail growth is the key driver of the investment story, with the company still early in its growth path. The firm has identified that “short-term headwinds” are impacting the company disproportionately in terms of investor sentiment and valuation. The adjusted EBITDA per unit is unlikely to decline further due to the company’s increasing focus, which resolves this near-term issue.
Back on February 20, Citi analyst Ronald Josey lowered the firm’s price target on Carvana Co. (NYSE:CVNA) from $550 to $465. The analyst maintained his Buy rating on the stock, resulting in a revised upside potential of 47% at the prevailing level.
Josey attributed this downward revision in price target to greater market volatility, following the company’s fourth-quarter announcement. The analyst recommends buying the stock on potential weakness.
Carvana Co. (NYSE:CVNA) operates an e-commerce platform that facilitates the purchase and sale of used cars. The company leverages a vertically integrated model that incorporates sales, inspection, and reconditioning centers, logistics fleet, and vending machines. It also offers other solutions, including financing, complementary products, and post-sale support.
3. JD.com Inc. (NYSE:JD)
JD.com Inc. (NYSE:JD) is one of the 10 best retail stocks with huge upside potential.
On February 16, Citi lowered its target price on JD.com Inc. (NYSE:JD) from $37 to $34. The firm reiterated a Buy rating on the shares, offering a revised upside potential of almost 34%.
Citi’s price target revision was based on an adjustment to the firm’s model for JD.com Inc. (NYSE:JD), following the company’s fourth quarter announcement.
Back on January 26, Joyce Ju from Bank of America Securities lowered the firm’s price target on JD.com Inc. (NYSE:JD) from $38 to $36. The analyst maintained his Buy rating on the stock, which still offers an adjusted upside potential of almost 42%.
The adjustment follows a downward revision of non-GAAP net profit estimates, alongside updated revenue growth forecasts of 13% for 2025, 6% for 2026, and 8% for 2027. Profitability is expected to be impacted by increased consumer incentives and food-delivery losses.
JD.com Inc. (NYSE:JD) is a supply chain-based technology and services enterprise. The company operates an extensive logistics network across China and has now expanded internationally with automated warehouses in Europe. It offers various products, including computers, electronics, home appliances, food & beverages, maternity products, cosmetics, pharmaceuticals, and healthcare products.
2. MercadoLibre Inc. (NYSE:MELI)
MercadoLibre Inc. (NYSE:MELI) is one of the 10 best retail stocks with huge upside potential.
On February 25, Cantor Fitzgerald reduced the firm’s price target on MercadoLibre Inc. (NYSE:MELI) to $2,400 from $2,750. The firm maintained its Overweight rating on the stock, which still offers a revised upside potential of almost 36%.
Despite the cut, Cantor Fitzgerald highlighted that MercadoLibre Inc. (NYSE:MELI) beat fourth-quarter revenue and EBIT forecasts by 3% and 2%, respectively. This was primarily driven by 37% year-over-year GMV growth excluding FX and strong fintech performance. However, the growth numbers include 40% acquiring TPV growth and 90% credit portfolio expansion. Based on these factors, the firm continues to maintain its fundamental bullish stance on the company.
On February 12, J.P. Morgan upgraded MercadoLibre Inc. (NYSE:MELI) from a Neutral rating to Overweight. In the process, the firm also raised the price target from $2,650 to $2,800, which results in a revised upside of more than 58%.
MercadoLibre Inc. (NYSE:MELI) operates various e-commerce platforms with a global reach. These include Mercado Libre Marketplace, Mercado Pago, Mercado Fondo, Mercado Crédito, and Mercado Envios. Through these platforms, it covers various services and solutions such as online commerce, financial technology services, shipping, and investment solutions.
1. Chewy Inc. (NYSE:CHWY)
Chewy Inc. (NYSE:CHWY) is one of the 10 best retail stocks with huge upside potential.
On February 24, Chewy Inc. (NYSE:CHWY) reaffirmed its FY25 adjusted EBITDA margin guidance of 5.6%-5.7%, emphasizing strong business momentum. The company remains on track towards its long-term adjusted EBITDA target of 10%, stating:
“As discussed on our December 10, 2025 earnings call, Chewy’s (CHWY) long-term plan remains intact, our business momentum remains strong, and we remain firmly on track toward the long-term margin profile of 10% Adjusted EBITDA that we outlined at Investor Day. As such, we are reaffirming our guidance for fiscal year 2025 and look forward to a successful fiscal year 2026.”
On February 19, Raymond James upgraded the rating on Chewy Inc. (NYSE:CHWY) from Market Perform to Outperform. The firm estimated a $28 price target, offering almost 10% upside at the current level.
The firm identifies an attractive risk/reward profile following a 33% decline in share price following the third-quarter report. It highlighted a favorable setup driven by low market expectations, and the company’s sales and margin expansion opportunities projected for 2026.
Chewy Inc. (NYSE:CHWY) is an e-commerce retail business that focuses on pet-health products and services. It offers supplies, medications, treats, and food for pets through a popular “Autoship” service, which generates 70% of business revenues. It offers products from over 3,500 brands through a high-volume automated distribution network.
While we acknowledge the potential of CHWY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CHWY and that has 100x upside potential, check out our report about the cheapest AI stock.
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