Internet stocks with strong earnings continue to do well in comparison with other sectors. The fact that they are unaffected by the overall impact of lower oil prices is a major reason for this.

The sector as a whole is relatively strong, but this article will look specifically at Internet Software. The industry is ranked 32 out of 265 (Top12%) of the Zacks Industry Rank.

Below I review four companies with strong growth and a recent beat of EPS. These companies have both a Zacks Rank of #1 (Strong Buy) or #2 (Buy) and have recently beat on EPS.

Channeladvisor (ECOM – Snapshot Report) is Zacks Rank #1(Strong Buy) that provides cloud-based e-commerce software solutions and publishes widely followed e-commerce sales data. It solutions include marketplaces, comparison shopping, paid search, social campaigns, flex feeds, web stores and rich media. The company serves traditional retailers, online retailers, brand manufacturers and advertising agencies.

Channeladvisor has a market cap of $300 Million. The company has EPS growth of 104% and 23.5% sales growth year over year. The stock sports a Zacks Style Score of “A in Growth.

Early in February, the company reported Q4 earnings of $0.11, an 18 cent beat.The stock reacted very well, moving from $9 a share to $14 in under a week, a 55% move. Since then the stock pulled back to the $11-$12 range.

CEO David Spitz went into detail on the quarter: 

“We had a very strong finish to the year, as our fourth quarter revenue and adjusted EBITDA were above the high end of our guidance ranges… Improvements in pricing, our focus on attracting and retaining larger retailers and branded manufacturers, and our emphasis on customer success helped produce a significant increase in gross merchandise value through our platform in the quarter, as well as continued growth in average revenue per customer. Revenue over performance came largely from a meaningful increase in variable subscription revenue and enabled us to exceed the $100 million mark in annual revenue for the first time in our company’s history.”

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