We recently published an article titled Why These 15 E-Commerce Stocks Are Skyrocketing So Far In 2025. In this article, we are going to take a look at where DNOW Inc. (NYSE:DNOW) stands against the other e-commerce stocks.
The e-commerce sector has been on fire for a while in the post-COVID era, and while it did slow down a little along with most tech stocks, it has recovered significantly due to strong consumer demand. We’ve seen some players like Temu have explosive growth with cheap Chinese products flooding the U.S. market. And while there was a scare of De Minimis being ended, Trump has reinstated it. Moreover, U.S.-based e-commerce companies have also done well.
Global e-commerce sales are projected to hit $6.56 trillion this year and could grow even more in the coming years as AI improves logistics and supply chains. E-commerce companies are also expanding into fintech and cloud computing businesses.
If the broader market continues to do well in the coming quarters, this industry could deliver solid returns for investors. As such, it’s a good idea to look into the stocks spearheading the gains so far this year.
Methodology
For this article, I screened the top-performing e-commerce stocks year-to-date. Stocks that I have covered recently will be excluded from this list.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
An oil rig platform at sea, surrounded by a golden sunrise.
DNOW Inc. (NYSE:DNOW)
Number of Hedge Fund Holders In Q4 2024: 26
DNOW Inc. (NYSE:DNOW) is a global distributor of energy and industrial products. The company also has a hand in digital commerce services.
The stock is up significantly so far in 2025 as DNOW Inc. (NYSE:DNOW) reported significantly better-than-expected Q4 2024 earnings, with revenue of $571 million (beating analyst estimates of $552.2 million) and non-GAAP EPS of $0.25, which exceeded expectations. Adjusted EBITDA was $45 million.
Moreover, DNOW Inc. (NYSE:DNOW) announced a new $160 million share buyback program. This doubled its previous authorization and amounts to 10% of its outstanding shares. It also completed the acquisition of Trojan Rentals for $114 million in cash.
The consensus price target of $17 implies 4.33% upside.
DNOW Inc. (NYSE:DNOW) is up 24.75% year-to-date.
Overall DNOW ranks 9th on our list of the e-commerce stocks that are skyrocketing so far in 2025. While we acknowledge the potential of DNOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DNOW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.