On the one hand, April is when spring comes into full bloom. On the other hand, April is tax season during which we pay the piper and settle up with Uncle Sam. However, I’m convinced this is a great month to be an investor, so I’m always looking for A-rated stocks to buy in April.
April is historically a good month for the stock market. Since 1945, April has averaged a return of 1.6%, tied only with December as the best-performing month of the year.
Some of this can be attributed to Uncle Sam and the tax filing deadline. If you’ve done well on your taxes and are getting a return, congratulations! One of the best things you can do with that money is to put it into the stock market, which brings a potential uptick in stock prices.
April also kicks off the second quarter of the year. Companies report their first-quarter earnings in April, providing investors with a bellwether of how the rest of the year will look. Solid earnings reports can drive stock prices higher.
I’m using the Portfolio Grader to find the best A-rated stocks to buy for April. These stocks get their “A” ratings because of their solid performance, earnings growth, analyst sentiment, and momentum. Any of them would be a great pick if you want to splash the market this month.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) is revolutionizing the tech industry with its powerful graphics processing units that can power artificial intelligence and machine learning applications.
The stock rose nearly 240% in 2023 and its revenue soared to more than $20 billion per quarter, a ridiculously steep increase that pushed Nvidia’s market cap to more than $2.2 trillion.
But if you’re betting that Nvidia’s growth is a bubble getting ready to pop, you’re betting on the wrong horse. Nvidia is just getting started.
Big Tech stocks are all clamoring to incorporate generative AI into their products. And while it’s still unclear which of these companies will ultimately emerge as king of the heap, Nvidia is in the enviable position of having a virtual monopoly with its generative AI chips.
And that was even before it unveiled its Blackwell GPUs, the latest in Nvidia’s line of AI chip products that should help extend Nvidia’s growth runway through 2024 and beyond.
NVDA stock is up 80% in 2024 and gets an “A” rating in the Portfolio Grader.
Super Micro Computer (SMCI)
I’m starting to think of Nvidia and Super Micro Computer (NASDAQ:SMCI) going hand-in-hand these days. SMCI has an immensely powerful position in providing the infrastructure, including server and storage solutions, that a company using NVDA’s chips will need.
The stock has risen nearly tenfold over the past year, hitting $1,000 per share. While some skeptics believe that Supermicro is a bubble ready to pop, I still believe that another rally could be at hand.
Annual revenue for the AI server market is expected to grow from $39 billion in 2023 to $200 billion by 2027. Supermicro won’t get all that business, but it should see more than its fair share.
SCMI stock is up 255% in 2024 and gets an “A” rating in the Portfolio Grader.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) is my top pick for social media stocks that should have an outstanding April.
Thanks to its Facebook, Instagram, Threads, and WhatsApp platforms, the company counts nearly half the world’s population as active users.
After a horrendous 2022, Meta managed to turn things around in 2023 by getting back to basics: focusing on profitability and its core business. The company’s headcount is down by 22% from a year ago.
Meta Platforms showed fourth-quarter revenue of $40.1 billion, up 25% from a year ago on the strength of improved advertising dollars. Income of $14 billion and $5.33 per share improved from $4.6 billion and $1.76 per share a year ago.
Look for Meta to continue to harness the power of AI and machine learning to optimize advertising and bring value to its customers. META stock is up 40% this year and gets an “A” rating in the Portfolio Grader.
Walmart (WMT)
With over 10,800 locations, Walmart (NYSE:WMT) is the biggest retailer in the world. And it uses that power to its advantage.
CEO Doug McMillon describes how Walmart purposefully keeps the prices of its own brands low, which pressures national brands that want to display their goods on Walmart shelves to lower their prices to Walmart as well.
This not only appeals to shoppers who are looking to stretch their dollars, but it also undercuts the competition and puts Walmart in a better position to dominate its local markets.
Walmart has locations in every state and more than two dozen countries, giving it a massive footprint. And it also has a thriving e-commerce division, which reached $100 billion in sales in 2023.
WMT stock is up 12% in 2024 and gets an “A” rating in the Portfolio Grader.
Eli Lilly & Co. (LLY)
Eli Lilly & Co. (NYSE:LLY) is a top pharmaceutical company with the advantage of being on the ground floor of one of the hottest healthcare developments in years.
Lilly sees massive potential with its obesity drug, Zepbound. The National Institutes of Health estimates that 42% of U.S. adults are obese, and there are dozens of diet programs and trends that make billions of dollars from customers who are looking for a way to drop some weight.
Zepbound’s solution is an injectable drug that helps people lose weight. About 1 in 3 people who took the drug at its highest dose (15 mg) report losing more than 58 pounds over a 72-week period.
The drug is so popular that some pharmacies are reporting shortages.
Analysts say Zepbound could be worth $25 billion a year or more in revenue to Lilly. That massive potential is why LLY stock is up 31% in 2024. It gets an “A” rating in the Portfolio Grader.
International Business Machines (IBM)
International Business Machines (NYSE:IBM) just keeps rolling along. The company is one of the oldest and best-known computing companies, responsible for generations of advances.
While some technology companies come and go, Big Blue has been a mainstay since the early 20th century. Even today, IBM computers handle as many as 90% of all credit card transactions and serve over 90% of financial institutions.
Today, IBM is one of the biggest cloud infrastructure providers in the world. And it has one of the best-known names in generative AI, watsonx, which will help attract customers looking for support for AI applications and cloud solutions.
For instance, golf fans watching the Masters Tournament this year will be able to see shot-by-shot insights on the Masters website and app, including data-driven projections and analysis for each hole.
IBM stock is up 15% in 2024, and gets an “A” rating in the Portfolio Grader.
Uber Technologies (UBER)
Uber Technologies (NYSE:UBER) transformed and disrupted an entire industry when launched its ridesharing business. It opened a path for people who don’t own a taxicab to earn money as a side gig. And it rode that business model to profitability.
Today, Uber is a massive company with more than $160 billion market capitalization. And its continuing to grow, expanding into food delivery with its Uber Eats service. It’s expanding into India, the globe’s most populous country. And it’s being added to the Dow Jones Transportation Average.
Uber said it computed 2.6 million trips in the fourth quarter, up 24% from the previous year. Gross bookings were up 22% to 37.5 billion, and the company’s revenue was up 15% to $9.93 billion.
For the full year, Uber saw $137.8 billion in gross bookings, up 19% from 2022, and revenue of $37.2 billion, a gain of 17% from a year ago.
UBER stock will only continue to grow from here. The stock is up 25% in 2024 and gets an “A” rating in the Portfolio Grader.
On the date of publication, Louis Navellier had a long position in NVDA, SMCI and LLY. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article had a long position in NVDA and SCMI. The staff member did not hold (either directly or indirectly) any other positions in the securities mentioned in this article.
