5 Ways To Play The Internet's Untapped Potential

Looking at stocks that have strong sales, earnings, quality and momentum, Credit Suisse's Richard Kersley identified five names in the Internet space. Four of the five names – Amazon, Facebook, Vipshop and Visa – check the firm's boxes for each of those categories. ARM Holdings checks three of the four boxes – with the exception of momentum.

Taking a closer look at the individual names, here's what Credit Suisse had to say.

Amazon

Credit Suisse said that Amazon has "re-accelerating growth" in the second half of 2015 due to the fact that the company has moved past the AWS price cuts and Japanese consumption tax.

Credit Suisse's Stephen Ju slapped a $700 price target on the stock – a 28 percent premium to current price.

Related Link: Credit Suisse: 4 Ways To Invest In Automation

ARM Holdings

ARM will benefit from both top- and bottom-line growth over the next two to three years, according to Credit Suisse.

The firm expects ARM to benefit from a higher royalty rate for its newer technologies, while it strengthens its market share "in newer targeted end markets."

The upside – 28 percent to 1,230 pence from 960.50 pence presently.

Facebook

Credit Suisse said that Facebook should be able to grow its ad revenue without "a material lift in ad loads."

Other Wall Street forecasts are "too conservative and underestimate the long-term monetization" and market potential of new products.

The analysts placed a $110 price target on the stock, roughly 15 percent above current price.

Vipshop Holdings

Vipshop Holdings has more than 40 percent upside from its current price, according to Evan Zhou from Credit Suisse. This is a play on China, Zhou said.

Further, Zhou added that the company is heading into its peak season, and that the company will see "easy YoY comparison in 2H15."

In the last two quarters of the year, Credit Suisse expects 72 and 55 percent year-over-year growth, respectively.

Visa

Credit Suisse said that Visa is the "primary beneficiary of the global transition from cash payments to electronic payments." Further, that transition is "still in its infancy."

In addition, Credit Suisse said that Visa should "recapture" its debit card market share with new pricing and an expanding international business.

In the immediate future, Credit Suisse said that Visa is "likely to purchase Visa Europe," a move that would lead to 5 to 15 percent accretion over time.