Sunday, May 26, 2024

Investing in April? 7 A-Rated Stocks to Buy for Growth

HomeStock-MarketInvesting in April? 7 A-Rated Stocks to Buy for Growth

As April showers bring May flowers, investors are looking for stocks that will blossom this spring. Historically, April has been one of the best months for the stock market, tied with December for the highest average returns since 1945. There are a few factors potentially driving this April rally.

Tax refund season is one. As Americans receive tax refunds from Uncle Sam, some are transferring that green into the market, providing an influx of cash. Companies also report their Q1 earnings in April, offering a glimpse into how the year could unfold. Solid profits can drive stock prices higher.

Using analysis from Louis Navellier’s investment research firm, we’ve identified 7 compelling “A-rated” stocks primed to pop this April across industries like tech, retail, pharma and more. Here’s a look at these potential bloomers:

Nvidia: Generative AI’s Top Chip

When it comes to the white-hot generative AI space, one company is supplying the critical chips: Nvidia. The semiconductor giant’s graphics processing units (GPUs) power many of the artificial intelligence and machine learning applications fueling today’s AI boom.

Big Tech companies from Microsoft to Google are scrambling to incorporate generative AI like ChatGPT into their products and services. And they’re turning to Nvidia to provide the high-powered computing muscle. Nvidia holds a virtual monopoly on these specialized AI chips.

The company’s market cap has swelled past $2.2 trillion as revenue soared over $20 billion per quarter in 2023. And it just unveiled its next-gen “Blackwell” GPUs to further extend this AI growth runway.

Analysts see Nvidia’s dominance continuing as adoption of generative AI proliferates throughout the economy. The stock has surged 80% already in 2024 and earned Navellier’s highest “A” rating.

Super Micro’s AI Infrastructure Play

As companies integrate Nvidia’s chips to run advanced AI applications, they’ll also need high-powered computing infrastructure to support it all. That’s where Super Micro Computer comes in, providing AI-optimized servers, storage and other hardware solutions.

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Super Micro has rocketed nearly 1,000% over the past year as it rode Nvidia’s coattails. While some discount it as an AI bubble, the opportunity seems vast. Annual revenue for the AI server market is projected to quintuple to $200 billion by 2027 as companies build out their artificial intelligence capabilities.

Super Micro won’t capture all of that immense revenue pool, but it should get a sizable slice thanks to its specialized AI hardware offerings. The $1,000/share stock has already gained 255% in 2024, earning Navellier’s top “A” grade.

Meta’s AI-Powered Resurgence

Social media giant Meta Platforms, the parent company of Facebook, Instagram and WhatsApp, had a dismal 2022 plagued by high costs and withering revenue. But the company doubled down on profitability in 2023, slashing over 20% of its workforce.

The leaner, meaner Meta is now integrating AI and machine learning across its services, from advertising technology to content recommendations. Its global user base of nearly 3 billion people provides an incredible data funnel to refine its AI systems.

In Q4, Meta reported revenue up 25% to $40.1 billion, while profits tripled to $14 billion compared to 2022. With a renewed focus on its core business and exciting AI prospects, Meta stock has rebounded 40% year-to-date, achieving an “A” score.

Walmart Wields AI-Powered Supply Chain

The world’s largest retailer is also becoming one of its most technologically advanced. Walmart has been implementing artificial intelligence across its operations, from supply chain logistics to inventory management.

The massive big box store — with over 10,800 locations globally — is using its economies of scale and bargaining power in new ways. Walmart purposely prices its own store-brand products extremely low to undercut national brands on its shelves.

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AI allows Walmart to optimize pricing and promotions while streamlining its distribution capabilities. E-commerce is another growth area, with Walmart’s online sales hitting $100 billion in 2023.

Thanks to this tech-powered competitive edge and incredible reach, Walmart stock has climbed 12% so far in 2024 and holds an “A” grade from Navellier’s analysts.

Eli Lilly’s Billion-Dollar Obesity Blockbuster

The pharmaceutical industry is also entering the AI age, with major drug companies leveraging the powerful number-crunching capabilities for new drug discovery. But it’s an existing medication that has Eli Lilly poised for explosive growth in 2024.

Lilly’s obesity drug Zepbound is being called a revolutionary, potential billion-dollar therapy. With over 40% of American adults classified as obese, the market is enormous for effective weight loss solutions.

In clinical trials, about one-third of patients taking the highest Zepbound dose lost over 58 pounds after 72 weeks. Demand for the injectable drug has been so high, some pharmacies have reported shortages.

Analysts estimate Zepbound’s peak sales could top $25 billion annually. That massive potential has driven Lilly stock up 31% year-to-date, securing its “A” rating.

IBM’s AI Cloud Services

From its early mainframe computers handling the majority of global financial transactions to its Watson AI system today, International Business Machines has long been an innovative tech pioneer.

Now IBM is positioning itself as a leader in the AI cloud computing space. Its services will be critical for companies looking to build and host advanced AI applications in scalable cloud environments.

The Masters golf tournament recently tapped IBM to provide AI-powered analytics on its website and apps. The technology will offer data-driven shot previews and projections for each hole.

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With its brand cachet and expertise in AI services, IBM will likely be a popular choice for enterprise clients. The stock has risen 15% in 2024 with an “A” Navellier rating.

Uber Technologies Keeps Driving

From disrupting the transportation industry with its rideshare service to expanding into food delivery, Uber Technologies has grand ambitions. And the $160 billion behemoth keeps executing, recently earning inclusion in the Dow Jones Transportation Average.

Uber reported a stellar Q4 of over 2.6 million trips completed globally, along with gross bookings up 22% to $37.5 billion. Full-year 2023 gross bookings hit $137.8 billion, a 19% increase.

The company is now targeting further international expansion in India and other high-growth markets. As Uber extends its reach into new mobility services, its stock has accelerated 25% so far this year, scoring Navellier’s highest “A” score.

The Bottom Line

Spring is often a season of renewal and growth. And this April, history suggests the stock market could similarly bloom, continuing its recent rally.

With generative AI adoption spreading like wildfire, semiconductor makers like Nvidia and supporting players like Super Micro are well-positioned. Meanwhile, AI is enhancing the products and services of consumer tech titans like Meta and retail leaders such as Walmart.

In healthcare, pharma innovators like Eli Lilly could have blockbuster drugs hit. Established enterprise players like IBM will play a key role providing cloud AI infrastructure. And Uber’s relentless growth shows the value of disruptive, data-driven mobility services.

Combining Navellier’s fundamental analysis with qualitative research, these 7 “A” stocks appear primed to blossom this April across vital disruptive themes like generative AI, cloud computing, and healthcare innovation. The spring season could be filled with green shoots and prosperous growth for savvy investors.

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Mezhar Alee
Mezhar Alee
Mezhar Alee is a prolific author who provides commentary and analysis on business, finance, politics, sports, and current events on his website Opportuneist. With over a decade of experience in journalism and blogging, Mezhar aims to deliver well-researched insights and thought-provoking perspectives on important local and global issues in society.

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