2 E-Commerce Stocks with Up to 210% Potential Upside, According to Wall Street

: VRM | Vroom Inc. News, Ratings, and Charts

VRM – E-commerce sales have been soaring as the number of online shoppers has ballooned amid the COVID-19 pandemic, and organizations have adopted an increasingly digital approach to marketing their products. While supply chain disruptions remain a concern, Wall Street Analysts expect fundamentally sound e-commerce stocks Vroom (VRM) and Lulu’s Fashion (LVLU) to witness substantial gains in the coming months. Read on.

The COVID-19 pandemic precipitated a drastic shift by consumers toward online shopping. With that, the e-commerce industry has witnessed a steep rise in customers, with retail sales from all kinds of devices increasing continuously. Consumer spending on e-commerce is expected to hit a record $1 trillion this year. And the resurgence of COVID-19 cases in some countries should drive e-commerce sales further.

Retailers have announced the opening of 8100 store locations this year, more than twice the number of locations they closed last year. While this could hinder the overall growth of the e-commerce industry, rapid digitization, increasing smartphone users, and the rising adoption of e-commerce platforms by business enterprises could keep the industry’s momentum going. The global B2C e-commerce market is estimated to reach $6.38 trillion by 2028, registering an 8.97% CAGR.

Given the industry’s promising growth prospects, Wall Street Analysts expect the stocks of fundamentally sound e-commerce companies Vroom, Inc. (VRM) and Lulu’s Fashion Lounge Holdings, Inc. (LVLU) to rally in the coming months.

Vroom, Inc. (VRM)

VRM in New York City is an e-commerce used automotive retailer in the United States. It operates an end-to-end e-commerce platform for buying, selling, transporting, reconditioning, pricing, financing, registering, and delivering vehicles.

VRM recently announced its new Extended Mile hub in Statesville, N.C. The new Extended Mile hub, similar to VRM’s Last Mile hubs but with a broader reach, provides a more customized driveway experience for 2.6 million people in more than 600 ZIP codes across North Carolina. VRM has delivered in the Statesville area since the company was founded in 2012 but now provides an experience that included a more personalized concierge service where customer advocates transport cars directly to car buyers’ driveways on Vroom-branded trucks and show them how to use their new vehicles.

During the fourth quarter, ended Dec. 31, 2021, VRM’s total e-commerce revenue increased 159.2% year-over-year to $738.72 million. Its gross e-commerce profit grew 63.9% from its year-ago value to $32.89 million.

Analysts expect VRM’s revenue to increase 47.9% year-over-year to $874.13 million in the first quarter (ending March 2022).

Among the 10 Wall Street analysts that rated the stock, four rated it Buy, and six rated it Hold. The 12-month median price target of $8.11 indicates a 209.54% potential upside. The price targets range from a low of $3.13 to a high of $14.00. The stock closed its last trading session at $2.62.

Lulu’s Fashion Lounge Holdings, Inc. (LVLU)

LVLU is an online retailer of women’s clothing, shoes, and accessories. The Chico, Calif.-based concern provides dresses, tops, bottoms, bridal wear, intimates, swimwear, footwear, and accessories under the Lulus brand. The company sells its products through owned media, which consists primarily of its website, mobile app, social media platforms, email, and SMS; earned media; and paid media.

LVLU’s net revenue increased 77.5% year-over-year to $96.76 million in the fourth quarter, ended Jan. 2, 2022. Its gross profit grew 85.8% from its year-ago value to $43.43 million. Its cash and cash equivalent stood at $11.40 million for its fiscal year ending Jan. 2, 2022.

The  $0.18 consensus EPS estimate  for the third quarter ending Sept. 30, 2022, represents a 34.6% improvement year-over-year. Analysts expect LVLU’s revenue to increase 25.7% year-over-year to $$133.62 million.

All four analysts that rated the stock rated it buy. The 12-month price target of $18.00 indicates a 132.3% potential upside. The price targets range from a low of $15.00 to a high of $25.00. The stock closed its last trading session at $7.75.

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year

Top 10 Stocks for 2022

REVISED: 2022 Stock Market Outlook

7 SEVERELY Undervalued Stocks


VRM shares were trading at $2.88 per share on Monday morning, up $0.26 (+9.92%). Year-to-date, VRM has declined -73.31%, versus a -3.89% rise in the benchmark S&P 500 index during the same period.


About the Author: Spandan Khandelwal


Spandan's is a financial journalist and investment analyst focused on the stock market. With her ability to interpret financial data, she aims to help investors evaluate the fundamentals of a company before investing. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
VRMGet RatingGet RatingGet Rating
LVLUGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Recession is Here...Watch Out Below!

More and more it looks like recession is here. This includes a dramatic decline for ISM Manufacturing discovered this morning. As you likely know, most economist call manufacturing the "canary in the coal mine" for the US economy as it often shows weakness before other areas. In fact, GDP Now from the Atlanta Fed reads it loud and clear with a negative revision for the US economy down to -2.1% for Q2. Ouch! We are going to discuss these new economic facts...what it means for the stock market outlook...and an interesting view on why the S&P 500 (SPY) does not decline in orderly fashion. All that and more is coming your way in this week's commentary…

:  |  News, Ratings, and Charts

4 Ideal Stocks to Add to Your Portfolio in July

While sluggish consumer spending data led to the stock market ending the last trading session of June in the red, a moderate inflation forecast is nurturing hopes over the economy to avoid a recession. Therefore, investors might consider buying quality stocks ARC Document Solutions (ARC), Core Molding Technologies (CMT), DLH Holdings (DLHC), and Friedman Industries (FRD) at their current low price levels to benefit from their big rebounds. Read more…

:  |  News, Ratings, and Charts

Stocks to Fall MUCH FURTHER this Bear Market Cycle

Spoiler alert...the bear market is not over. Unfortunately history shows that the S&P 500 (SPY) has much further to fall to squeeze out excess valuation. That is just a natural part of the bear market process that is properly explained in this timely market commentary. More importantly, this commentary provides a strategy on how to profit in the days and weeks ahead as the market finds its way to bottom. Read on below for more...

:  |  News, Ratings, and Charts

Wall Street Analysts Predict More Than 160% Upside in These Stocks

The high global inflation and hawkish federal reserve are leading to heightened volatility in the market. However, despite the market uncertainties, Wall Street analysts see a more than 160% upside potential in IonQ (IONQ) and Rigetti Computing (RGTI). Thus, these stocks could be ideal additions to your watchlist. Keep reading…

:  |  News, Ratings, and Charts

Stocks to Fall MUCH FURTHER this Bear Market Cycle

Spoiler alert...the bear market is not over. Unfortunately history shows that the S&P 500 (SPY) has much further to fall to squeeze out excess valuation. That is just a natural part of the bear market process that is properly explained in this timely market commentary. More importantly, this commentary provides a strategy on how to profit in the days and weeks ahead as the market finds its way to bottom. Read on below for more...

Read More Stories

More Vroom Inc. (VRM) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All VRM News