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Buying the Best Top-Ranked Stocks in April

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The Nasdaq surged 2.3% on Monday after President Trump said there will be “flexibility” on his reciprocal tariff plans. The strong showing helped it close at its long-term 50-week moving average and above its 21-day.

Trading has been far more subdued on Tuesday as Wall Street waits for what’s next on the tariff front. The trade and tariff uncertainty sparked the stock market correction. But the pullback was to be expected after the massive post-election rally sent AI stocks and the market to unsustainably overheated levels.

There could be more near-term selling. That said, until investors see concrete evidence that tariffs are impacting market-moving companies it is prudent to buy strong stocks trading well below their highs.

Buying into uncertainty is a winning strategy for long-term investors.

Investors should be even more confident because the earnings growth outlook is impressive and the Fed is still set to lower interest rates in the back half of 2025.

With this in mind, let’s dig into how investors can use a Zacks screen to help find some of the best Zacks Rank #1 (Strong Buy) stocks to consider buying as we head into April.

Zacks Rank #1 (Strong Buy) stocks outperform the market in good and bad times. However, there are over 200 stocks that earn a Zacks Rank #1 at any given time.

Therefore, it’s helpful to understand how to apply filters to the Zacks Rank in order to narrow the list down to a more manageable and tradable set of stocks.

Parameters

Clearly, there are only three items on this screen. But together, these three filters can result in some impressive returns.

• Zacks Rank equal to 1

Starting with a Zacks Rank #1 is often a strong jumping off point because it boasts an average annual return of roughly 24.4% per year since 1988.

• % Change (Q1) Est. over 4 Weeks greater than 0

Positive current quarter estimate revisions over the last four weeks.

• % Broker Rating Change over 4 Week equal to Top # 5

Top 5 stocks with the best average broker rating changes over the last four weeks.

This strategy comes loaded with the Research Wizard and is called bt_sow_filtered zacks rank5. It can be found in the SoW (Screen of the Week) folder.

Here is one of the five stocks that qualified for the Filtered Zacks Rank 5 strategy today…

Buy This Soaring, Under-the-Radar AI Stock for 60% Upside

Credo Technology Group Holding Ltd (CRDO - Free Report)  is a fast-growing tech firm focused on high-speed connectivity solutions for the data infrastructure market. Credo’s core connectivity solutions are optimized for optical and electrical Ethernet applications, aiming to “break bandwidth barriers on every wired connection in the data infrastructure market.”

Zacks Investment Research
Image Source: Zacks Investment Research

AI hyperscalers and the artificial intelligence arms race are leading to booming sales for Credo, which was founded in 2008 and went public in 2022. Credo is projected to grow its revenue by 121% in FY25 (fiscal year ending in April 2025) and 57% in FY26 to reach $671 million, up from just $106 million in FY22.

Credo is projected to expand its adjusted EPS by 600% from $0.09 in the year-ago period to $0.63 in FY25 and boost earnings by another 71% next year. CRDO crushed our estimates by 40% in the past two quarters and its earnings outlook for FY26 has surged 15% since its Q3 FY25 release on March 4. Credo’s upbeat EPS outlook helps it land its Zacks Rank #1 (Strong Buy).

Zacks Investment Research
Image Source: Zacks Investment Research

Credo stock has ripped 250% higher in the past three years to blow away the Tech Sector’s 35%. This run includes a 450% climb in the past two years to 7X Tech’s return and crush Nvidia’s 350%. Even though CRDO has gone on a  fantastic run, the stock has tumbled 42% from its January peaks.

The high-flying tech stock found support at its 200-day moving average recently. On top of that, nine of the 10 brokerage recommendations Zacks has for the stock are “Strong Buys.” Credo also trades roughly 60% below its average Zacks price target.

Get the rest of the stocks on this list and start looking for the newest companies that fit these criteria. It's easy to do. And it could help you find your next big winner. Start screening for these companies today with a free trial to the Research Wizard. You can do it.

Click here to sign up for a free trial to the Research Wizard today.

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. 

Disclosure: Performance information for Zacks’ portfolios and strategies are available at: www.zacks.com/performance_disclosure


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