The Nasdaq is one of the most closely watched indexes for every investor to follow. The Nasdaq, which is an acronym for the National Association of Securities Dealers Automated Quotations, is an exchange comprised of more than 3,400 individual securities. Many of these stocks are in the technology sector including the Magnificent 7 stocks. With that trend unlikely to change, it’s a good time to look at the best Nasdaq stocks to buy in April.
The Nasdaq exchange was launched in 1971 to create an avenue for new, emerging companies to trade on the stock market. Also, it was the first U.S. stock exchange to allow online trading, which attracted technology stocks that viewed the exchange as more modern.
Because of its heavy weighting toward technology stock, Nasdaq stocks are popular with growth-oriented investors. However, you can find stocks in virtually every sector of the market.
So now, let’s explore three stocks from outside the tech sector. Each has high short-term upside that puts them among the best Nasdaq stocks to buy in April.
Microvast (MVST)
Microvast (NASDAQ:MVST) hearkens back to the early days of the Nasdaq exchange. The company only went public in 2021. MVST stock is down 60% in the last six months, the company is not yet profitable, and the stock trades for just 59 cents per share as of the market close on April 2, 2024. Oh, and short interest is up about 13% in the last month and about 14% of the total float.
However, Microvast provides the essential technology needed to make electric vehicle (EV) batteries. In fact, the company is part of every stage of the process including manufacturing. It currently has three battery manufacturing plants in operation.
On April 1, Microvast beat analyst expectations on the top and bottom lines. Revenue of $104.58 million was 10.7% higher than estimates and nearly 50% higher year-over-year.
However, the company is also burning through cash, and that shows no signs of stopping. In the company’s earnings report, it said it will need funding to complete construction on a fourth manufacturing plant in Tennessee. This could be something for shareholders to watch in the short term. However, analysts don’t appear to be phased. They remain bullish on the stock and give it a 493% upside from its current price.
Piedmont Lithium (PLL)
If you’re looking for an even more picks-and-shovel play on the emerging need for lithium, Piedmont Lithium (NASDAQ:PLL) takes you right to the source. Mining stocks were hit hard as the supply of lithium outpaced demand in 2023. As a reflection of that supply-demand imbalance, PLL stock is down 77% in the last 12 months.
However, that cycle appears to be reversing. The key takeaway for investors comes down to location. Piedmont is one of the leading North American lithium miners. This coincides to a time when the U.S. Congress is looking for ways to bring the lithium supply chain closer to home.
Further, Piedmont has an operational lithium mine in Quebec with two other assets in development. At peak production, the company is targeting 525,000tpy of spodumene concentrate and 60,000tpy of lithium hydroxide. As lithium prices increase, PLL stock is setting up to be an easy multibagger stock in coming years.
Real Good Food (RGF)
At first glance, Real Good Food (NASDAQ:RGF) is an odd choice as one of the best Nasdaq stocks to buy in April. The stock is down over 91% in the last 12 months. And, it trades for just 37 cents per share after diluting its stock in October 2023.
Plus, the company is trying to occupy a niche of healthy frozen food that doesn’t have much of a moat. But, it is in channels such as Costco (NASDAQ:COST) and Sam’s Club. Additionally, the company is generating revenue which has increased year over year (YOY) in the last two quarters.
Now to help it turn a profit, Real Good Food is making a change in the C-suite. Tim Zimmer, the former chief marketing officer at Smithfield Foods is taking over as CEO. He most recently helped Smithfield turn around its Sara Lee Fresh Bakery division.
Investors will hear from Zimmer for the first time when the company reports earnings in May. But analysts remain bullish on RGF stock with a consensus price target of $4.75, an increase of 11,73% from its current price.
On the date of publication, Chris Markoch did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
