U.S. stock markets witnessed an impressive rally in 2024 after an astonishing bull run in 2023. Wall Street also closed January 2025 on a positive note. However, U.S. stocks suffered a blow and the bull run halted in February.
Last month, the three major stock indexes — The Dow, the S&P 500 and the Nasdaq Composite — tumbled 1.6%, 1.4% and 4%, respectively. The Nasdaq Composite posted its worst month since April 2024.
Market participants remained concerned about the Trump administration’s tariff and trade-related policies and their impact on U.S. economic growth, especially on the inflation rate. Moreover, a relatively hawkish statement by Fed Chairman Jerome Powell regarding sticky inflation raised questions about the magnitude of interest rate cut this year.
Additionally, prolonged geopolitical conflicts in the Middle East and other parts of Asia and Europe pose concerns. Both consumer confidence and consumer sentiment indexes plunged in February.
Nevertheless, a few of stocks are expected to maintain their momentum in March, too. Importantly, a handful of stocks with a favorable Zacks Rank are likely to provide double-digit returns in the short-term. Five such stocks are: Affirm Holdings Inc. AFRM, AppLovin Corp. APP, Robinhood Markets Inc. HOOD, Carvana Co. CVNA and Sprouts Farmers Market Inc. SFM.
Top 5 Momentum Picks for March
These five stocks have strong potential for March and have seen positive earnings estimate revisions in the last 30 days. Each of the stocks sports a Zacks Rank #1 (Strong Buy) at present and has a Zacks Momentum Score of A or B. You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks in the past month.
Zacks Investment Research
Image Source: Zacks Investment Research
Affirm Holdings Inc.
Affirm Holdings’ fiscal second-quarter 2025 earnings beat consensus estimates by a huge margin. AFRM has achieved strong revenue growth through diverse income streams, including merchant network fees, interest from loans and virtual card revenues. Growing active merchant numbers, improving gross merchandise value and average balance of loans are driving merchant network revenues and interest income.
Key partnerships including those with Apple Pay and Hotels.com play a vital role in its expansion. AFRM has officially expanded to the United Kingdom, through a partnership with Alternative Airlines. Tapping into industries like travel, hospitality, and technology bodes well. AFRM’s shares are expected to offer substantial upside potential going forward.
Affirm Holdings has an expected revenue and earnings growth rate of 36.9% and 89.2%, respectively, for the current year (ending June 2025). The Zacks Consensus Estimate for the current-year earnings has improved more than 100% in the last 30 days.
The short-term average price target of brokerage firms for the stock represents an increase of 23.8% from the last closing price of $64.15. The brokerage target price is currently in the range of $90-$57. This indicates a maximum upside of 40.3% and a downside of 11.1%.
AppLovin Corp.
AppLovin is engaged in building a software-based platform for mobile app developers to enhance the marketing and monetization of their apps in the United States and internationally. APP provides a technology platform that enables developers to market, monetize, analyze and publish their apps.
APP’s last reported financial results demonstrate its strong fundamentals and growth potential. The introduction of its AXON 2.0 technology and strategic expansion in gaming studios have significantly boosted revenue growth.
AppLovin reported fourth-quarter adjusted EPS of $1.73, beating the Zacks Consensus Estimate of $1.34. The company posted quarterly revenues of $1.37 billion, surpassing the Zacks Consensus Estimate by 8.6%.
In the fourth quarter, the average revenue per monthly active payer was $52 versus the consensus estimate of $51.84. Monthly active payers were 1.6 million compared to the consensus estimate of 1.62 million.
AppLovin has an expected revenue and earnings growth rate of 20.4% and 51.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 11.5% in the last 30 days.
The short-term average price target of brokerage firms for the stock represents an increase of 56.4% from the last closing price of $325.74. The brokerage target price is currently in the range of $650-$180. This indicates a maximum upside of 99.5% and a downside of 44.7%.
Robinhood Markets Inc.
Robinhood Markets operates a financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds, options, gold, and cryptocurrencies. HOOD buys and sells Bitcoin, Ethereum, Dogecoin, and other cryptocurrencies using its Robinhood Crypto platform.
Given higher retail participation in markets, HOOD’s trading revenues are expected to grow. Expansion efforts, including pending buyouts of TradePMR and Bitstamp, alongside product expansion to become a leader in the active trader market, will bolster its financials. HOOD’s vertical integration will likely enhance its product velocity.
Robinhood Markets has an expected revenue and earnings growth rate of 25.3% and 38.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 28% over the last 30 days.
The short-term average price target of brokerage firms for the stock represents an increase of 37.1% from the last closing price of $50.1. The brokerage target price is currently in the range of $105-$18. This indicates a maximum upside of 110% and a downside of 64%.
Carvana Co.
Carvana’s acquisition of ADESA’s U.S. operations has strengthened its logistics network, auction capabilities and reconditioning processes. By utilizing ADESA’s infrastructure, CVNA can scale refurbishment operations, improving both the quality and volume of vehicles prepared for resale.
CVNA anticipates sequential year-over-year growth in retail unit sales for first-quarter 2025. Despite being the nation’s second-largest used car retailer, CVNA holds only a 1% share of the highly fragmented U.S. automotive retail market, signaling substantial expansion potential as online car buying gains traction. CVNA’s emphasis on driving significant adjusted EBITDA per unit is reinforced by ongoing enhancements in technology, processes and operational efficiency.
Carvana has an expected revenue and earnings growth rate of 22.1% and 97.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 18.1% over the last 30 days.
The short-term average price target of brokerage firms for the stock represents an increase of 29% from the last closing price of $233.1. The brokerage target price is currently in the range of $350-$225. This indicates a maximum upside of 50.2% and a downside of 3.6%.
Sprouts Farmers Market Inc.
Sprouts Farmers’ focus on product innovation, emphasis on e-commerce, expansion of private label offerings and targeted marketing with everyday great pricing bodes well. SFM has been lowering operational complexity, optimizing production, improving in-stock position and updating to smaller format stores. These efforts helped SFM post better-than-expected fourth-quarter 2024 results, wherein both the top and the bottom lines grew year over year.
Buoyed by the performance, Sprouts Farmers provided a decent 2025 view. SFM expects net sales to rise between 10.5% and 12.5% with comps anticipated to increase in the range of 4.5-6.5%. SFM’s strong sales growth, margin expansion and disciplined financial management position it as a compelling investment opportunity.
Sprouts Farmers has an expected revenue and earnings growth rate of 12.1% and 21.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.2% over the last seven days.
The short-term average price target of brokerage firms for the stock represents an increase of 13.5% from the last closing price of $148.40. The brokerage target price is currently in the range of $200-$105. This indicates a maximum upside of 34.8% and a downside of 29.5%.
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