Wall Street concluded a disappointing first quarter of 2025. Market participants remained concerned about the Trump administration’s tariff and trade-related policies, and their impact on U.S. economic growth, especially on the inflation rate.
Despite these headwinds, we have identified five growth stocks that investors should purchase in April for solid upside potential in the near term. These are AppLovin Corp. APP, Marvell Technology Inc. MRVL, Reddit Inc. RDDT, Affirm Holdings Inc. AFRM and EMCOR Group Inc. EME. Each of our picks sports a Zacks Rank #1 (Strong Buy) and a Growth Score of A or B. You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
AppLovin is engaged in building a software-based platform for mobile app developers to enhance the marketing and monetization of their apps in the United States and internationally. APP provides a technology platform that enables developers to market, monetize, analyze and publish their apps.
AppLovin’s last reported financial results demonstrate its strong fundamentals and growth potential. The introduction of APP’s artificial intelligence (AI)-powered AXON 2.0 technology and strategic expansion in gaming studios have significantly boosted revenue growth. APP’s AI-enabled Audience+ marketing platform is also boosting its reach into the direct-to-consumer (DTC) and e-commerce spaces.
AppLovin has an expected revenue and earnings growth rate of 20.4% and 51.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 11.5% in the last 60 days.
The short-term average price target of brokerage firms for the stock represents an increase of 90.7% from the last closing price of $282.70. The brokerage target price is currently in the range of $200 to $650. This indicates a maximum upside of 130% and a downside of 29.3%.
Marvell Technology is benefiting from a strong demand environment across the data center end market. In the last reported quarter, MRVL’s data center end market revenues increased 98% year over year and 25% sequentially, propelled by strong revenue growth across AI-driven demand for PAM products and ZR electro-optics.
MRVL is a promising player in the solid-state drive controllers’ market. The storage market is seeing a steady increase in demand, given the fast-growing data volume, especially the exponential growth in unstructured data. Completion of inventory digestions is likely to aid growth for MRVL across the enterprise networking and carrier infrastructure end markets.
Marvell Technology has an expected revenue and earnings growth rate of 43.8% and 75.8%, respectively, for the current year (ending January 2026). The Zacks Consensus Estimate for current-year earnings has improved 1.8% in the last 30 days.
The short-term average price target of brokerage firms for the stock represents an increase of 96.6% from the last closing price of $62.67. The brokerage target price is currently in the range of $90 to $188. This indicates a maximum upside of 200% and no downside.
Reddit operates a digital community in the United States and internationally. RDDT’s platform enables users to engage in conversations, explore passions, research new hobbies, exchange goods and services, create new communities and experiences, share laughs, and find belonging.
RDDT also organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another.
Reddit has an expected revenue and earnings growth rate of 40.4% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 50.6% in the last 60 days.
The short-term average price target of brokerage firms for the stock represents an increase of 85.1% from the last closing price of $110.05. The brokerage target price is currently in the range of $75 to $235. This indicates a maximum upside of 113.6% and a downside of 31.8%.
Affirm Holdings’ fiscal second-quarter 2025 earnings beat consensus estimates by a huge margin. AFRM has achieved strong revenue growth through diverse income streams, including merchant network fees, interest from loans and virtual card revenues. Growing active merchant numbers, improving gross merchandise value and average balance of loans are driving merchant network revenues and interest income.
Key partnerships including those with Apple Pay and Hotels.com play a vital role in its expansion. AFRM has officially expanded to the United Kingdom, through a partnership with Alternative Airlines. Tapping into industries like travel, hospitality, and technology bodes well. AFRM’s shares are expected to offer substantial upside potential going forward.
Affirm Holdings has an expected revenue and earnings growth rate of 36.9% and 89.2%, respectively, for the current year (ending June 2025). The Zacks Consensus Estimate for the current-year earnings has improved more than 100% in the last 60 days.
The average short-term price target of brokerage firms represents an increase of 64.4% from the last closing price of $45.51. The brokerage target price is currently in the range of $56 to $86. This indicates a maximum upside of 89% and no downside.
EMCOR Group is benefiting from resilient demand for its services, primarily in semiconductors, data centers, manufacturing re-shoring, healthcare and institutional sectors. EME’s remaining performance obligations, as of Dec. 31, 2024, were $10.1 billion, up 14.2% year over year.
Although macroeconomic woes and supply-chain disruptions are concerns, EME has strong visibility into 2025. EME’s recent acquisition of Miller Electric Company is expected to boost market presence in the Southeastern United States.
EMCOR Group has an expected revenue and earnings growth rate of 12.8% and 8.6%, respectively, for the current year. The Zacks Consensus Estimate for the current-year earnings has improved 5.1% in the last 60 days.
The average short-term price target of brokerage firms represents an increase of 33.5% from the last closing price of $375.50. The brokerage target price is currently in the range of $445 to $515. This indicates a maximum upside of 37.2% and no downside.
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Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report
EMCOR Group, Inc. (EME) : Free Stock Analysis Report
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Reddit Inc. (RDDT) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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