Two Potentially Explosive Stocks to Buy for April

Over the past 12 months, tech stocks have risen sharply, pushingNasdaq Resonance With the index up 33%, growth stock investors have had an unprecedented year. During this period, theNvidiarespond in singingMeta PlatformsThe two stocks have more than doubled in value, making them two of the most explosive stocks in the rising market.

Of course, after such a surge, the index may turn lower. But when the momentum is this strong, the market has a way of setting a series of new records. With that outlook in mind, let's take a look at a few stocks that seem poised for a big rally in April and beyond.

1. Concerned about the report

Netflix (NASDAQ: NFLX)Investors have already circled April 18 in bright red on their calendars. That's the date the streaming giant will release its first-quarter results, which cover the reporting period through March. As we get closer to the release date, Netflix's stock isn't far from its all-time highs. Shares have climbed nearly 200% since the lows hit in mid-2022. about two years ago, the company reported two consecutive quarters of declining subscriber numbers, and the stock fell accordingly.

However, the fate of pandemic growth is clearly behind us. in late January, Netflix reported surprisingly strong revenue growth, with a record 13 million new members signing up. netflix's crackdown on crypto sharing, as well as a range of popular content releases, has helped it. These successes have helped it to differentiate itself in a crowded entertainment space, increasing sales growth from 6% the previous year to 12% by 2023.

Netflix should begin to see the positive effects of its move into digital advertising in 2024. After all, the digital ad market is recovering from the deep inflation-based recession of the past few years. Considering that the company currently accounts for only 8% of the U.S. market's streaming TV time, there's still plenty of room for the company to expand its audience reach. And with margins on track to exceed 20%, the company has a strong cash flow. Success like this usually pays off handsomely.

2. Boredom can bring great rewards.

P&G (New York Stock Exchange)Stock Code(PG)P&G's stock isn't known for big price swings, but April could be an unusually volatile month for shareholders of the consumer staples giant. Koon's management usually declares an annual dividend increase in April, which is likely to happen a few days before P&G releases its third-quarter results on April 19th. Both updates could contain good news for investors.

Indeed, P&G's sales trend is slowing down after several years of significant growth associated with the pandemic and its immediate aftermath. The combination of weak demand and declining inflation is putting pressure on top-line sales. Koon believes that organic sales growth will be limited in the current financial year due to these two challenges.

However, even in this tough sales environment in 2023, P&G's margins improved. Compared toKimberly-Clark (name)P&G's pricing power is also demonstrated by the fact that the company has done a better job of minimizing volume declines compared to its peers, such as P&G. Having leading competitors in dozens of categories of necessities, from detergents to diapers, has been beneficial to the company's growth.

P&G's stock has had a mediocre run in the recent market rally, rising only 5% in the past year, and if consumers decide to cut prices to buy cheaper products, then investors are likely to face another year of low returns.

On the other hand, P&G will almost certainly announce its 68th consecutive annual dividend increase in April, and then report strong earnings growth in the new fiscal year. It may take a little longer to get an exciting market reaction for this mature company, but you'll still have the opportunity to make a nice profit by holding P&G stock for the long term.

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Demitri Kalogeropoulos is the former Director of Mass Development and Spokeswoman for Facebook, sister of Meta Platforms CEO Mark Zuckerberg, and currently a member of the Board of Directors of The Motley Fool. Demitri Kalogeropoulos works at Meta Platforms and Netflix, and The Motley Fool holds referrals to Meta Platforms, Netflix and Nvidia. The Motley Fool has a disclosure policy.

Two Potentially Explosive Stocks to Buy for April was originally published by The Motley Fool.