10 Best E Commerce Software for January 2026
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Market Overview & Selection Criteria
The e-commerce software sector continues to power digital transformation amid rising online retail demands, with companies providing platforms, tools, and analytics for merchants worldwide. ValueSense analysis highlights opportunities where intrinsic value exceeds current market pricing, focusing on high quality ratings, strong revenue growth, healthy free cash flow (FCF) margins, and robust ROIC. These 10 stocks were selected using ValueSense's stock screener criteria: Quality rating above 5.0, positive FCF where possible, and significant undervaluation based on proprietary intrinsic value calculations. This watchlist emphasizes diversified e-commerce enablers, from large-cap leaders to high-growth small caps, ideal for value-oriented portfolios seeking undervalued stocks to buy in tech.
Featured Stock Analysis
Stock #1: Shopify Inc. (SHOP)
| Metric | Value |
|---|---|
| Market Cap | $204.1B |
| Quality Rating | 7.4 |
| Intrinsic Value | $27.9 |
| 1Y Return | 46.2% |
| Revenue | $10.7B |
| Free Cash Flow | $1,910.9M |
| Revenue Growth | 30.3% |
| FCF margin | 17.9% |
| Gross margin | 48.7% |
| ROIC | 57.9% |
| Total Debt to Equity | 8.9% |
Investment Thesis
Shopify Inc. (SHOP) stands out as a market leader in e-commerce platforms with a Market Cap of $204.1B and impressive Quality rating of 7.4. Despite trading above its intrinsic value of $27.9, the company's 1Y Return of 46.2% reflects strong momentum driven by Revenue of $10.7B and Revenue growth of 30.3%. Free Cash Flow reached $1,910.9M with a solid FCF margin of 17.9% and exceptional ROIC of 57.9%, supported by a low Total Debt to Equity of 8.9%. Gross margin at 48.7% underscores operational efficiency in a scalable SaaS model, positioning SHOP for sustained growth in merchant solutions.
This analysis reveals SHOP's potential as a high-quality e-commerce backbone, though valuation discipline is key given the intrinsic value gap.
Key Catalysts
- Explosive 30.3% revenue growth fueling platform expansion
- Industry-leading 57.9% ROIC indicating capital efficiency
- Massive $1,910.9M FCF supporting reinvestment and buybacks
- Strong 46.2% 1Y return amid e-commerce adoption
Risk Factors
- Premium pricing relative to $27.9 intrinsic value
- Competitive pressures in merchant services space
- Macro sensitivity to consumer spending slowdowns
- High market cap exposure to broader tech volatility
Stock #2: GoDaddy Inc. (GDDY)
| Metric | Value |
|---|---|
| Market Cap | $16.6B |
| Quality Rating | 7.0 |
| Intrinsic Value | $185.7 |
| 1Y Return | -40.4% |
| Revenue | $4,869.8M |
| Free Cash Flow | $1,537.9M |
| Revenue Growth | 8.8% |
| FCF margin | 31.6% |
| Gross margin | 61.5% |
| ROIC | 19.4% |
| Total Debt to Equity | 4,193.5% |
Investment Thesis
GoDaddy Inc. (GDDY), with a Market Cap of $16.6B and Quality rating of 7.0, presents a compelling value case trading near its intrinsic value of $185.7. Despite a 1Y Return of -40.4%, fundamentals shine with Revenue at $4,869.8M, 8.8% growth, and standout FCF of $1,537.9M yielding a 31.6% FCF margin. Gross margin of 61.5% and ROIC of 19.4% highlight profitability, though elevated Total Debt to Equity at 4,193.5% warrants monitoring. ValueSense metrics position GDDY as an undervalued domain and hosting powerhouse with recovery potential.
Key Catalysts
- Exceptional 31.6% FCF margin driving cash generation
- High 61.5% gross margin from recurring revenue
- 19.4% ROIC supporting domain ecosystem growth
- Proximity to $185.7 intrinsic value for upside
Risk Factors
- Heavy 4,193.5% debt-to-equity leverage risk
- Negative -40.4% 1Y return signaling momentum concerns
- Slower 8.8% revenue growth vs. peers
- Dependency on small business digital adoption
Stock #3: Wix.com Ltd. (WIX)
| Metric | Value |
|---|---|
| Market Cap | $5,799.1M |
| Quality Rating | 7.3 |
| Intrinsic Value | $343.2 |
| 1Y Return | -53.4% |
| Revenue | $1,929.2M |
| Free Cash Flow | $568.9M |
| Revenue Growth | 13.2% |
| FCF margin | 29.5% |
| Gross margin | 68.4% |
| ROIC | 21.0% |
| Total Debt to Equity | (563.6%) |
Investment Thesis
Wix.com Ltd. (WIX) boasts a Market Cap of $5,799.1M and Quality rating of 7.3, with significant undervaluation at intrinsic value of $343.2. A 1Y Return of -53.4% contrasts robust Revenue of $1,929.2M, 13.2% growth, $568.9M FCF, and 29.5% FCF margin. Gross margin leads at 68.4%, ROIC at 21.0%, and negative Total Debt to Equity of 563.6% signals net cash strength. This positions WIX as a high-margin website builder with rebound potential in creator economy tools.
Key Catalysts
- Superior 68.4% gross margin and 29.5% FCF margin
- Strong 21.0% ROIC from scalable subscriptions
- Deep discount to $343.2 intrinsic value
- 13.2% revenue growth in no-code platforms
Risk Factors
- Sharp -53.4% 1Y return indicating volatility
- Negative debt-to-equity from cash hoard management
- Competition in DIY website space
- Currency exposure as Israel-based firm
Stock #4: SPS Commerce, Inc. (SPSC)
| Metric | Value |
|---|---|
| Market Cap | $3,379.3M |
| Quality Rating | 6.8 |
| Intrinsic Value | $121.3 |
| 1Y Return | -51.9% |
| Revenue | $729.8M |
| Free Cash Flow | $148.4M |
| Revenue Growth | 19.3% |
| FCF margin | 20.3% |
| Gross margin | 68.4% |
| ROIC | 9.2% |
| Total Debt to Equity | 1.0% |
Investment Thesis
SPS Commerce, Inc. (SPSC) features a Market Cap of $3,379.3M and Quality rating of 6.8, undervalued against intrinsic value of $121.3. 1Y Return of -51.9% belies solid Revenue of $729.8M, 19.3% growth, $148.4M FCF, and 20.3% FCF margin. Gross margin at 68.4% and minimal Total Debt to Equity of 1.0% support stability, though ROIC of 9.2% trails peers. ValueSense data highlights SPSC's supply chain software as a steady e-commerce enabler.
Key Catalysts
- Healthy 19.3% revenue growth in EDI solutions
- Clean balance sheet with 1.0% debt-to-equity
- 68.4% gross margin for profitability
- Value gap to $121.3 intrinsic value
Risk Factors
- Low 9.2% ROIC vs. sector leaders
- -51.9% 1Y return momentum risk
- Niche focus on retail supply chains
- Slower FCF scale relative to revenue
Stock #5: Oddity Tech Ltd. (ODD)
| Metric | Value |
|---|---|
| Market Cap | $2,318.1M |
| Quality Rating | 7.1 |
| Intrinsic Value | $76.5 |
| 1Y Return | -6.4% |
| Revenue | $780.8M |
| Free Cash Flow | $102.1M |
| Revenue Growth | 97.7% |
| FCF margin | 13.1% |
| Gross margin | 73.1% |
| ROIC | 51.9% |
| Total Debt to Equity | 6.3% |
Investment Thesis
Oddity Tech Ltd. (ODD), Market Cap $2,318.1M and Quality rating 7.1, trades below intrinsic value of $76.5. 1Y Return of -6.4% accompanies explosive 97.7% revenue growth to $780.8M, $102.1M FCF, and 13.1% FCF margin. Exceptional 73.1% gross margin and 51.9% ROIC shine, with low Total Debt to Equity of 6.3%. This AI-driven beauty tech firm exemplifies high-growth e-commerce innovation per ValueSense metrics.
Key Catalysts
- Triple-digit 97.7% revenue growth
- Stellar 51.9% ROIC and 73.1% gross margin
- Positive FCF trajectory at $102.1M
- Undervalued vs. $76.5 intrinsic value
Risk Factors
- Recent -6.4% 1Y return volatility
- Early-stage scaling risks in beauty e-commerce
- 13.1% FCF margin improvement needed
- International expansion execution
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Stock #6: GigaCloud Technology Inc. (GCT)
| Metric | Value |
|---|---|
| Market Cap | $1,477.9M |
| Quality Rating | 7.5 |
| Intrinsic Value | $138.0 |
| 1Y Return | 103.4% |
| Revenue | $1,222.9M |
| Free Cash Flow | $188.1M |
| Revenue Growth | 10.2% |
| FCF margin | 15.4% |
| Gross margin | 23.1% |
| ROIC | 21.3% |
| Total Debt to Equity | 101.0% |
Investment Thesis
GigaCloud Technology Inc. (GCT) has a Market Cap of $1,477.9M and top Quality rating of 7.5, far below intrinsic value of $138.0. Boasting 103.4% 1Y Return, Revenue hit $1,222.9M with 10.2% growth, $188.1M FCF, and 15.4% FCF margin. ROIC at 21.3% offsets lower 23.1% gross margin, while Total Debt to Equity of 101.0% is manageable. ValueSense identifies GCT as a B2B marketplace winner.
Key Catalysts
- Outstanding 103.4% 1Y return
- Strong 21.3% ROIC in logistics tech
- $188.1M FCF supporting growth
- Massive discount to $138.0 intrinsic value
Risk Factors
- Lower 23.1% gross margin vs. software peers
- 101.0% debt-to-equity leverage
- China exposure in supply chain
- Growth deceleration from 10.2%
Stock #7: Riskified Ltd. (RSKD)
| Metric | Value |
|---|---|
| Market Cap | $756.4M |
| Quality Rating | 5.2 |
| Intrinsic Value | $11.0 |
| 1Y Return | 1.3% |
| Revenue | $338.8M |
| Free Cash Flow | $32.9M |
| Revenue Growth | 6.5% |
| FCF margin | 9.7% |
| Gross margin | 50.2% |
| ROIC | (78.5%) |
| Total Debt to Equity | 8.1% |
Investment Thesis
Riskified Ltd. (RSKD), Market Cap $756.4M and Quality rating 5.2, offers value at intrinsic value $11.0. Flat 1Y Return of 1.3% pairs with Revenue $338.8M, 6.5% growth, $32.9M FCF, and 9.7% FCF margin. Gross margin 50.2% and negative ROIC -78.5% flag concerns, but low Total Debt to Equity 8.1% aids stability. Fraud prevention focus provides e-commerce defensive play.
Key Catalysts
- Steady $32.9M FCF generation
- Improving 6.5% revenue growth
- Low 8.1% debt-to-equity
- Alignment with $11.0 intrinsic value
Risk Factors
- Weak 5.2 quality rating and -78.5% ROIC
- Minimal 1.3% 1Y return
- Fraud tech competition intensity
- Lower 9.7% FCF margin
Stock #8: VTEX (VTEX)
| Metric | Value |
|---|---|
| Market Cap | $688.3M |
| Quality Rating | 6.5 |
| Intrinsic Value | $8.6 |
| 1Y Return | -39.2% |
| Revenue | $234.1M |
| Free Cash Flow | $33.6M |
| Revenue Growth | 3.6% |
| FCF margin | 14.4% |
| Gross margin | 76.2% |
| ROIC | 17.5% |
| Total Debt to Equity | 1.4% |
Investment Thesis
VTEX (Market Cap $688.3M, Quality rating 6.5) trades above intrinsic value $8.6 amid -39.2% 1Y Return. Revenue $234.1M grew 3.6%, with $33.6M FCF and 14.4% FCF margin. High 76.2% gross margin and 17.5% ROIC impress, backed by 1.4% Total Debt to Equity. Latin America e-commerce platform shows resilience.
Key Catalysts
- Elite 76.2% gross margin
- Solid 17.5% ROIC
- Positive $33.6M FCF
- Regional expansion potential
Risk Factors
- -39.2% 1Y return pressure
- Slow 3.6% revenue growth
- Small cap volatility
- Emerging market risks
Stock #9: Rezolve AI PLC (RZLV)
| Metric | Value |
|---|---|
| Market Cap | $667.6M |
| Quality Rating | 10.0 |
| Intrinsic Value | $4.3 |
| 1Y Return | -29.8% |
| Revenue | $6,451.3K |
| Free Cash Flow | ($36.6M) |
| Revenue Growth | N/A |
| FCF margin | (568.0%) |
| Gross margin | 95.4% |
| ROIC | (470.8%) |
| Total Debt to Equity | (248.8%) |
Investment Thesis
Rezolve AI PLC (RZLV), Market Cap $667.6M and perfect Quality rating 10.0, is undervalued vs. intrinsic value $4.3. 1Y Return -29.8% reflects early-stage challenges with Revenue $6,451.3K (growth N/A), negative $36.6M FCF, and -568.0% FCF margin. High 95.4% gross margin and ROIC -470.8% indicate investment phase, with Total Debt to Equity -248.8%. AI commerce tech merits watch.
Key Catalysts
- Top 10.0 quality rating
- 95.4% gross margin potential
- AI-driven e-commerce innovation
- Net cash position
Risk Factors
- Negative $36.6M FCF and -568.0% margin
- Extreme -470.8% ROIC
- Tiny revenue base
- -29.8% 1Y return volatility
Stock #10: Vasta Platform Limited (VSTA)
| Metric | Value |
|---|---|
| Market Cap | $387.9M |
| Quality Rating | 6.7 |
| Intrinsic Value | $7.7 |
| 1Y Return | 119.1% |
| Revenue | R$1,737.4M |
| Free Cash Flow | R$198.9M |
| Revenue Growth | 13.6% |
| FCF margin | 11.4% |
| Gross margin | 60.9% |
| ROIC | 23.3% |
| Total Debt to Equity | 24.6% |
Investment Thesis
Vasta Platform Limited (VSTA), Market Cap $387.9M and Quality rating 6.7, undervalued at intrinsic value $7.7. Stellar 119.1% 1Y Return drives Revenue R$1,737.4M (13.6% growth), R$198.9M FCF, and 11.4% FCF margin. 60.9% gross margin, 23.3% ROIC, and 24.6% Total Debt to Equity support education-ecommerce hybrid strength.
Key Catalysts
- Massive 119.1% 1Y return
- Healthy 23.3% ROIC
- R$198.9M FCF in local currency
- 13.6% revenue growth
Risk Factors
- Brazil currency (R$) exposure
- 24.6% debt-to-equity
- Education sector cyclicality
- Smallest market cap risk
Portfolio Diversification Insights
This 10 best e-commerce software stock picks collection offers balanced exposure across market caps (large-cap SHOP to micro-cap VSTA) and growth profiles, primarily in SaaS platforms, fraud tools, and marketplaces. Sector allocation: 80% pure e-commerce software, 20% adjacent (supply chain, AI/beauty). High-quality names like SHOP (7.4 rating) complement undervalued plays like GDDY and WIX, reducing concentration risk. Pair high-ROIC leaders (SHOP, ODD) with steady cash generators (GDDY, VTEX) for diversification; small caps like GCT and VSTA add growth asymmetry. Overall, low average debt and strong margins enhance resilience.
Market Timing & Entry Strategies
Consider positions during e-commerce sector dips, such as post-earnings volatility or broader tech pullbacks, targeting stocks trading nearest intrinsic value like GDDY $185.7 or WIX $343.2. Use dollar-cost averaging for high-conviction picks (SHOP, GCT) amid 20-30% discounts. Monitor revenue growth catalysts quarterly; enter small caps (ODD, VSTA) on momentum confirmation via 1Y returns. Scale in based on ValueSense quality ratings above 7.0 for core holdings, watching macro retail trends.
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FAQ Section
How were these stocks selected?
These e-commerce software stocks were filtered via ValueSense screener for quality ratings 5.0+, strong FCF margins, high ROIC, and undervaluation per intrinsic value metrics, focusing on diversified market caps.
What's the best stock from this list?
GigaCloud (GCT) leads with 7.5 quality rating, 103.4% 1Y return, and deep discount to $138.0 intrinsic value, though all offer unique value profiles based on risk tolerance.
Should I buy all these stocks or diversify?
Diversify across 3-5 based on sector overlap and cap size; combine large-cap stability (SHOP) with small-cap growth (ODD, VSTA) for balanced stock watchlist exposure.
What are the biggest risks with these picks?
Key concerns include high debt (GDDY), negative returns (WIX, SPSC), low ROIC (RSKD), and small-cap volatility (RZLV, VSTA), alongside e-commerce cyclicality.
When is the best time to invest in these stocks?
Target entries near intrinsic values during market corrections or positive earnings surprises, using ValueSense charting for revenue growth and FCF trends confirmation.