The correct answer is      (A.)  Amazon.com (AMZN)

Anyone looking for an illustration of the success of online retailers needs to look no further than Amazon.com, an early pioneer in the industry. In 1997, the company reported just $148 million in net sales. However, that total has climbed steadily over the last decade and has now surpassed $11.7 billion -- for a remarkable compounded annual growth rate of +61%. More importantly, the firm first achieved net profitability in 2003 and hasn't looked back since.

Meanwhile, shareholders have been richly rewarded by this growth. In fact, AMZN has delivered sensational gains of +33.4% annually over the past decade -- enough to turn a $10,000 investment into nearly $180,000.

It may seem hard to remember now, but it wasn't long ago that shopping over the Internet was a novelty rather than a way of life. But the added convenience, wide selection, and competitive prices of Internet shopping have made e-commerce explode over the past ten years.

Online retail sales in the U.S. are forecast to continue rising at a rapid pace, topping the $300 billion mark by 2010. That would equate to roughly 12% of the nation's total retail spending -- double the 6% from 2006. The growth is going global, too. The number of Internet users could swell by more than 1 billion worldwide over the next decade, which should help ensure that this growing wave of online spending builds in the years ahead -- much to the benefit of investors in the online retail sector.

And although Amazon.com is a cash cow with a highly efficient business model, the stock can be pricey, offering little incentive for value investors. Fortunately, there are several other attractively priced stocks in this group. Nathan Slaughter, editor of StreetAuthority's premium value investing newsletter, Half-Priced Stocks, conducted an in-depth analysis of the online retailing industry in a recent issue. In his research, Nathan uncovered one company in particular that he thinks is set to explode.

This firm develops software to help companies get the most out of their websites, and over 6,000 customers have already signed on. With a client roster that includes the likes of Apple (Nasdaq: AAPL), Verizon (NYSE: VZ), and Orbitz (NYSE: OWW), the firm's revenues soared +307% between 2002 and 2006. But Wall Street hasn't yet taken notice, and by his calculations the shares offer hefty upside appreciation potential of +30%.

To learn the names of this stock, and to learn more about the Half-Priced Stocks newsletter, please visit this link.