March remained a solid stock season, and all signs point to continued strength if you’re looking for stocks to buy in April. Though inflation seems mildly stickier than previously planned, most expect the planned rate cuts to go into effect later this year, creating continued market momentum that’s surprisingly hard to shake.
We’re mostly past fourth-quarter and end-of-year 2023 earnings reports, and, across the board, most popular companies performed in line with or beyond expectations. That relative performance further reinforces April’s strong stock potential , even as we enter the comparatively slower period before summer spending begins in earnest.
GigaCloud Technology (GCT)
GigaCloud Technology (NASDAQ:GCT) shares remained volatile through March, but the stock seems to be settling into a slower (but sustainable) upward trajectory over the past few weeks and setting it up among the best stocks to buy in April. Following an impressive earnings report earlier this month, the stock surged by 25% before retracting to below its pre-earnings level. Despite this volatility, GigaCloud’s superior earnings spotlight its potential to persist as a high-momentum stock, promising significant upside for investors.
GigaCloud excels in providing a comprehensive B2B eCommerce solution that tackles the substantial challenges of product and inventory management, sourcing, and payment processing for medium-sized businesses. Its platform offers an active vendor marketplace, efficient shipment and freight management, warehouse storage, AI-powered fulfillment, and, importantly, secure cross-border payments. It’s one of those stocks to buy in April.
Notably, GigaCloud’s price-to-earnings ratio is a modest 11x, well below the tech sector’s average of 36x. This discrepancy becomes even more striking when considering GigaCloud’s earnings growth; the company has succeeded in doubling its earnings per share across the last five quarters. It has also sustained a strong free cash flow per share while trading at just 1.5x sales, underscoring its exceptional value.
Steel Dynamics (STLD)
Value investors tend to view commodity-based companies as too risky, but Steel Dynamics (NASDAQ:STLD) proves an exception with its blend of traditional manufacturing and cutting-edge sustainability.
As America’s third-largest steel producer, Steel Dynamics distinguishes itself not just through its scale but also via its commitment to sustainable manufacturing. The company’s emphasis on metal recycling not only bolsters its profitability by ensuring high-quality metals remain in circulation within global value chains but also supports wider environmental objectives. With an attractive total yield of 8.14%, STLD draws value-focused investors with its compelling valuation. Additionally, Steel Dynamics consistently rewards its shareholders, evidenced by a recent 8% dividend increase to $0.46 per share, marking five years of consecutive growth and maintaining a 100% quarterly payment rate during this time, highlighting its dedication to shareholder returns.
In 2023, Steel Dynamics celebrated its second-highest revenue year, posting $18.8 billion in sales and $2.5 billion in net income. The company also showed its commitment to shareholder value by repurchasing 8% of its outstanding shares throughout the year, a substantial investment reflecting its confidence even amidst higher debt costs and the expensive nature of steel production. This makes Steel Dynamics a compelling choice for conservative investors looking for stocks to buy in April.
Steelcase (SCS)
With an ex-dividend date on the horizon, high-end office furniture company Steelcase (NYSE:SCS) stands out among stocks to buy in April as a unique small-cap value play that wider markets overlook. The company is on a winning streak post-pandemic as it adapts to changing work-from-home trends. This success is highlighted by the company’s recent announcement of a $0.10 quarterly dividend, which represents a 61% payout ratio and a 2.88% yield.
Steelcase has quickly regained its financial footing after a challenging pandemic period. Its latest quarterly report showed a net income of $30.8 million, more than double that of the same period in the previous year. Moreover, sales have remained consistent at around $800 million over the past five quarters, indicating that Steelcase is enhancing margins without compromising on quality.
In response to the shifting work-from-home landscape, Steelcase is repositioning itself to achieve 5-7% annual sales growth and a 5% free cash flow margin (as a percentage of revenue) over the next five years. Concurrently, the company has significantly reduced its debt to adapt to the higher-rate environment, thereby improving liquidity and minimizing interest expenses. These strategic moves position Steelcase as one of the most promising stocks to buy in April.
Nintendo (NTDOY)
Nintendo (OTCMKTS:NTDOY) may be branching out from its gaming foundation, setting it up as one of the stocks to buy in April set to capitalize on multiple emerging trends. The company has recently renewed its licensing for haptic technology, suggesting advancements in line with last year’s rumors of a partnership with Google (NASDAQ:GOOG, NASDAQ:GOOGL) to create a next-generation virtual reality headset. Though these rumors are unconfirmed, adding haptic feedback technology to Nintendo’s repertoire hints at significant innovations underway.
Apart from its gaming ventures, Nintendo is leveraging its vast intellectual property portfolio through film licensing. The Super Mario Bros. Movie, released last year, was a blockbuster hit, generating over $1.4 billion at the global box office. Building on this success, Nintendo has announced an adaptation of Zelda, which is expected to achieve or even exceed the commercial success of the Mario film. Despite hardware delays that have postponed the release of its new console until early 2025, Nintendo’s flagship products continue to enjoy popularity, positioning the company as as one of the best stocks to buy in April.
Stem (STEM)
Stem (NYSE:STEM) distinguishes itself among solar stocks and other stocks to buy in April by prioritizing AI technology and maintaining its appealing per-share pricing. The company enhances energy consumption efficiency for commercial and industrial clients via its premier software, Athena. This platform utilizes sophisticated analytics to automate energy decisions, facilitating considerable savings in costs and energy consumption.
Stem is capitalizing on the increasing demand for smart energy solutions by forging strategic partnerships and venturing into new markets. Its commitment to an AI-driven strategy differentiates Stem in the fiercely competitive clean energy storage sector, offering a substantial competitive advantage.
Moreover, Stem’s recent quarterly report points towards a trajectory of profitability. Its concentration on enterprise solutions provides a safeguard against the volatility inherent in the residential solar market. Coupled with a valuation that stands out for its attractiveness among solar stock options, Stem emerges as an exceptional choice for investors looking to enrich their stock holdings in April.
SoFi Technologies (SOFI)
SoFi Technologies (NASDAQ:SOFI) seems to have successfully established its unique position at the intersection of innovative fintech and traditional banking, making it one of the few solid financial stocks to buy in April, considering ongoing Fed uncertainty.
In January, the company celebrated its first profitable quarter, marking a modest earnings milestone of two cents per share. This significant step forward, particularly in the ongoing “higher for longer” economic climate, indicates that the stock is on track for growth as interest rates find a stable footing.
SoFi is expanding its product range beyond its foundational banking and lending services to reinforce its standing as a full-service financial provider. The company has broadened its investment platform to encompass alternative investments, offering investors access to unique assets like private credit and venture capital through managed funds.
However, not all outlooks on SoFi are rosy. Morgan Stanley recently downgraded the stock, citing an overly optimistic view of the company achieving its 2026 profitability targets amid forecasts of potentially slower revenue growth in 2024.
Nonetheless, several factors contribute to a still-promising outlook for SoFi. With the stock trading significantly below its peak levels, it remains an attractive option for stocks to buy in April.
Symbotic (SYM)
Symbotic (NASDAQ:SYM), a mid-cap company, is revolutionizing warehouse operations for major corporations such as Walmart (NYSE:WMT) and Target (NYSE:TGT). The company utilizes AI to streamline and enhance the efficiency of warehouse robotics platforms, enabling faster and safer selection, packing, and shipping of goods than traditional methods, all while saving significant costs for these companies. Although currently serving big-name brands, Symbotic’s strategy to broaden its reach promises to catapult the robotics stock to new heights. It’s one of those stocks to buy in April.
The company is innovating to make warehouse automation and robotics accessible to small- and medium-sized businesses (SMBs) that previously could not afford the efficiencies available to giants like Walmart and Target. By targeting multi-user warehouse complexes and integrating automation as part of a leasing incentive, rather than selling directly to SMBs, Symbotic is tapping into the vast, largely untapped SMB market. This move could create a self-sustaining revenue model, transforming Symbotic into a powerhouse capable of generating significant long-term profit.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.