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U.S. stock markets are witnessing extreme volatility in April due to the imposition of the Trump administration’s tariffs. Although, negotiations between the United States and several other countries including China are ongoing, nothing positive has emerged so far.
As a result, several good stocks have lost significant value and become very attractive at their current prices. Here, we recommend five such stocks with a favorable Zacks Rank. Investment in these stocks should be fruitful in the short-term.
The stocks are: Affirm Holdings Inc. AFRM, Marvell Technology Inc. MRVL, Super Micro Computer Inc. SMCI, QUALCOMM Inc. QCOM and Edison International EIX. These stocks have strong revenue and earnings potential for 2025 and have seen positive earnings estimate revisions in the last 60 days.
The chart below shows the price performance of our five picks in the past month.
Affirm Holdings has achieved strong revenue growth through diverse income streams, including merchant network fees, interest from loans and virtual card revenues. AFRM expects revenues to be in the range of $3.13-$3.19 billion in fiscal 2025. Growing active merchant numbers, improving gross merchandise value, and the average balance of loans are driving merchant network revenues and interest income.
Key partnerships, like those with Apple Pay and Hotels.com, play a vital role in AFRM’s expansion. It has officially expanded to the United Kingdom, through a partnership with Alternative Airlines. Tapping into industries like travel, hospitality, and technology bode well for the company. AFRM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Affirm Holdings has an expected revenue and earnings growth rate of 37.1% and 96.4%, respectively, for the current year (ending June 2025). The Zacks Consensus Estimate for current-year earnings has improved 53.8% in the last 30 days.
The stock price of AFRM is currently trading at a discount of 40.5% from its 52-week high price. The average short-term price target of brokerage firms represents an increase of 47.2% from the last closing price of $49.09. The brokerage target price is currently in the range of $50 to $86. This indicates a maximum upside of 75.2% and no downside.
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. MRVL currently carries a Zacks Rank #2 (Buy).
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 1.9% in the last 60 days.
MRVL has a current dividend yield of 0.4%. It has a forward P/E (price/earnings) of 21.4% compared with the industry’s P/E of 21.64% and the S&P 500’s P/E of 18%.
The stock price of MRVL is currently trading at a discount of 53.7% from its 52-week high price. The short-term average price target of brokerage firms for the stock represents an increase of 95% from the last closing price of $58.92. The brokerage target price is currently in the range of $60 to $188. This indicates a maximum upside of 219.1% and no downside.
Super Micro Computer is a total IT solution manufacturer for AI/ML (machine language), Cloud, HPC, Storage and 5G/Edge technologies. SMCI’s rack-scale plug-and-play Total AI and IT Solutions (especially the Deep-Learning and LLM-optimized ones based on NVIDIA’s HGX-H100) are gaining substantial traction.
SMCI’s servers are optimized for NVIDIA’s high-performance graphics processing units, including the flagship Blackwell platform. This platform is expected to power the next generation of AI clusters and hyperscale data centers, providing SMCI with a profitable growth avenue.
SMCI’s liquid-cooled server solutions are gaining momentum as they address the power and thermal challenges pertaining to large-scale AI workloads. Its focus on modular and rack-scale solutions also enables customers to scale efficiently, driving repeat business and boosting customer retention. SMCI currently sports a Zacks Rank #1.
Super Micro Computer has an expected revenue and earnings growth rate of 59.2% and 14%, respectively, for the current year (ending June 2025). The Zacks Consensus Estimate for current-year earnings remained the same in the last seven days.
Super Micro Computer has a P/E ratio of 14.5X compared with 12.2X of the industry and 18X of the S&P 500. It has a P/S ratio of 1.1X compared with 1.4X of the industry and 2.9X of the S&P 500. It has a P/B ratio of 3.4X compared with 7.4X of the industry and 3.3X of the S&P 500. SMCI has an ROE of 26.5% compared with 15.7% of the industry and 17.2% of the S&P 500.
The stock price of SMCI is currently trading at a discount of 64% from its 52-week high price. The short-term average price target of brokerage firms for the stock represents an increase of 54.4% from the last closing price of $36.47. The brokerage target price is currently in the range of $15 to $100. This indicates a maximum upside of 174.2% and downside of 58.9%.
Zacks Rank #2 QUALCOMM is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor firm for the intelligent edge. With the accelerated rollout of 5G technology, QCOM is benefiting from investments in building a licensing program in mobile.
QCOM formed a strategic collaboration with Google to develop Generative AI digital cockpit solutions. QCOM also recently introduced powerful automotive platforms to bolster the in-vehicle digital experience and facilitate automated driving. These initiatives are driving growth in the automotive business. Strength in the Android smartphone market is a tailwind.
QUALCOMM’s Cloud AI 100 chip can carry out 227 server queries and manage a net of 3.8 queries per watt. In 2024, QCOM unveiled the Snapdragon 8s Gen 3 mobile chip, which supports 30 generative models including image generation and voice assistants. QCOM also launched the AI-capable Snapdragon X Plus laptop processor, which has a faster CPU speed using less power.
QUALCOMM has an expected revenue and earnings growth rate of 11.9% and 16%, respectively, for the current year (ending September 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.8% in the last 30 days.
The short-term average price target of brokerage firms for the stock represents an increase of 15.6% from the last closing price of $169.32. The brokerage target price is currently in the range of $160-$270. This indicates a maximum upside of 59.5% and a maximum downside of 5.5%.
QUALCOMM has a P/E ratio of 12.5X compared with 21.6X of the industry and 18X of the S&P 500. SMCI has an ROE of 39.5% compared with 2.3% of the industry and 17.2% of the S&P 500. Moreover, QCOM has a current dividend yield of 2.3%.
The stock price of SMCI is currently trading at a discount of 35.6% from its 52-week high price. The short-term average price target of brokerage firms for the stock represents an increase of 32.8% from the last closing price of $148.56. The brokerage target price is currently in the range of $145 to $250. This indicates a maximum upside of 68.3% and a downside of a mere 2.4%.
Zacks Rank #2 Edison International aims to invest $26.6-$31.5 billion during 2025-2028 to strengthen its infrastructure. EIX is expanding its renewable energy portfolio to earn the economic and environmental, social, and governance incentives offered by the utility-scale renewable energy market.
Edison International has also been enhancing its energy storage capacity. Increasing data centers, along with rapid electrification of transportation and buildings, have been boosting electricity demand, which should boost EIX’s performance.
With industries across the board rapidly adopting clean energy as their preferred choice of energy source, utility providers like EIX are expanding their renewable energy portfolio to earn economic and environmental, social, and governance incentives offered by the utility-scale renewable energy market.
Edison International has an expected revenue and earnings growth rate of 2.8% and 19.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1% in the last seven days.
EIX has a P/E ratio of 9.8X compared with 18.1X of the industry and 18X of the S&P 500. It has a P/S ratio of 1.3X compared with 2.3X of the industry and 2.9X of the S&P 500. It has a P/B ratio of 1.4X compared with 1.6X of the industry and 3.3X of the S&P 500.
Edison International has an ROE of 12.7% compared with 9.5% of the industry and 17.2% of the S&P 500. Moreover, EIX has a current dividend yield of 5.7%.
The stock price of EIX is currently trading at a discount of 34.6% from its 52-week high price. The short-term average price target of brokerage firms for the stock represents an increase of 19.8% from the last closing price of $57.96. The brokerage target price is currently in the range of $53 to $86. This indicates a maximum upside of 48.3% and downside of 8.6%.
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This article originally published on Zacks Investment Research (zacks.com).
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