ZACKSยท2025-04-28 12:10Core Viewpoint - U.S. stock markets are experiencing high volatility due to tariffs imposed by the Trump administration, leading to significant price drops in several stocks, making them attractive investment opportunities in the short term [1]. Group 1: Recommended Stocks - Affirm Holdings Inc. (AFRM), Marvell Technology Inc. (MRVL), Super Micro Computer Inc. (SMCI), QUALCOMM Inc. (QCOM), and Edison International (EIX) are identified as stocks with strong revenue and earnings potential for 2025, supported by positive earnings estimate revisions in the last 60 days [2]. Group 2: Affirm Holdings Inc. (AFRM) - Affirm Holdings has diverse income streams, expecting revenues between $3.13 billion and $3.19 billion in fiscal 2025, driven by growing active merchant numbers and improving gross merchandise value [3][4]. - Key partnerships, including those with Apple Pay and Hotels.com, are crucial for AFRM's expansion, which has also entered the UK market [4]. - AFRM has an expected revenue growth rate of 37.1% and earnings growth rate of 96.4% for the current year, with a Zacks Consensus Estimate for earnings improving by 53.8% in the last 30 days [5]. - The stock is trading at a 40.5% discount from its 52-week high, with a potential upside of 75.2% based on brokerage target prices [6]. Group 3: Marvell Technology Inc. (MRVL) - Marvell Technology is experiencing strong demand in the data center market, with revenues increasing by 98% year-over-year, driven by AI-related products [7][9]. - MRVL has an expected revenue growth rate of 43.8% and earnings growth rate of 75.8% for the current year, with a slight improvement in earnings estimates [11]. - The stock is trading at a 53.7% discount from its 52-week high, with a potential upside of 219.1% based on brokerage target prices [12]. Group 4: Super Micro Computer Inc. (SMCI) - Super Micro Computer manufactures IT solutions for AI, Cloud, and 5G technologies, with its products gaining traction in the market [13][14]. - SMCI has an expected revenue growth rate of 59.2% and earnings growth rate of 14% for the current year [16]. - The stock is trading at a 64% discount from its 52-week high, with a potential upside of 174.2% based on brokerage target prices [18]. Group 5: QUALCOMM Inc. (QCOM) - QUALCOMM is transitioning to a connected processor firm, benefiting from 5G technology and strategic collaborations, including one with Google for AI solutions [19][20]. - The company has an expected revenue growth rate of 11.9% and earnings growth rate of 16% for the current year, with a slight improvement in earnings estimates [22]. - The stock is trading at a 35.6% discount from its 52-week high, with a potential upside of 68.3% based on brokerage target prices [24]. Group 6: Edison International (EIX) - Edison International plans to invest $26.6 billion to $31.5 billion from 2025 to 2028 to enhance its infrastructure and expand its renewable energy portfolio [25]. - The company has an expected revenue growth rate of 2.8% and earnings growth rate of 19.7% for the current year, with a slight improvement in earnings estimates [28]. - The stock is trading at a 34.6% discount from its 52-week high, with a potential upside of 48.3% based on brokerage target prices [30].