Every month, we ask our freelance writers to share their top US stocks with investors — here’s what they would like to buy for April!
[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]
Enphase Energy
What it does: Enphase is a US solar energy company leading in facilitating the supply and storage of clean energy.
By Oliver Rodzianko. I bought Enphase Energy (NASDAQ:ENPH) stock in March, and I intend to add to my position in April. I consider this a very rare opportunity to buy the shares at a 67% discount from all-time high prices.
The World Economic Forum outlines a potential compound annual growth rate of 20% for solar deployment until 2050. It claims solar to be the fastest growing energy technology in all history.
However, this is a long-term investment, and I think there could be short-term losses before substantial gains.
Also, the company is highly subject to regulatory shifts. Trump getting into the White House in the upcoming election could see negative pressure on US clean energy companies if he shifts attention toward policy favourable to fossil fuels.
Nonetheless, I consider this one of the best investments in my portfolio. I think it’s truly contrarian, and I believe I’m right about the long-term potential here.
Oliver Rodzianko owns shares in Enphase Energy.
MicroStrategy
What it does: MicroStrategy develops mobile and cloud-based software for the provision of business intelligence services.
By Mark David Hartley. MicroStrategy (NASDAQ:MSTR) shares are up 507% over the past year and 120% this month. CEO Michael Saylor’s bet on blockchain assets seems to be paying off – finally. Many believe such a large investment in a nascent and speculative technology puts the company at high risk, yet he seems happy to take those odds.
The company became profitable this year for the first time since 2020, with equity that’s increased almost five-fold since March 2023. However, with a price-to-earnings (P/E) ratio of 63.2, the share price is considered heavily overvalued. Some analysts estimate the $1,565 shares to be worth only $388. Others predict a 12-month price target of $1,810.
Opinions on the stock are extremely polarised, with some foreseeing massive gains while others predicting collapse. While I typically err on the side of caution, in this rare case I feel the reward could be worth the risk.
Mark Hartley owns shares in MicroStrategy.
Oddity Tech
What it does: Oddity analyses skin tone and beauty needs through a phone camera and uses machine learning to match consumers with products.
By Ben McPoland. I like the look of Oddity Tech (NASDAQ: ODD) right now. The company operates two fast-growing digital brands: Il Makiage, which sells cosmetics, and SpoiledChild, which focuses on hair and skincare products.
The firm only went public in July 2023 and either or both brands could fall out of fashion as new trends emerge. That’s a risk.
However, Oddity is growing very quickly and is already profitable. In 2023, revenue surged 57% to $509m as the company beat its own guidance in every single quarter. Adjusted EBITDA grew 173% to $107m.
It has collected 2bn data points from over 50m unique customers. From this data, the firm says artificial intelligence produces superior product recommendations versus a human eye. This differs from the beauty industry’s trial-and-error model.
Its proprietary skin health molecule, Fibroquin, showed stronger efficacy than retinol in a clinical trial. Unsurprisingly then, customer reviews are overwhelmingly positive.
Management says both brands are on course for $1bn+ in sales by 2028 and it plans to launch more in different categories.
Trading at 25 times forecast earnings and with a small $2.5bn market cap, I recently bought the stock.
Ben McPoland owns shares in Oddity.
