5 Momentum Stocks to Buy for April After a Capricious March

Wall Street is facing hurdles this year after an astonishing bull run of three consecutive years. After witnessing volatility in February, U.S. stock markets suffered setbacks in March. The outbreak of war in the Middle East between the U.S.-Israel forces and Iran, a complete breakdown of the global crude oil and natural gas supply-chain systems, surging oil prices and inflationary expectations significantly dented investors’ sentiments.

Last month, the broad market index — S&P 500 — tumbled 5.1%, marking its worst monthly performance since 2022. The blue-chip Dow plummeted 5.4%, terminating a 10-month winning run and the tech-heavy Nasdaq Composite fell 4.8%.

Nevertheless, the situation is likely to change in April following news that the ongoing Middle East war could come to an end soon. On March 31, both President Donald Trump and Iranian president Masoud Pezeshkian reportedly called for the cooling of hostilities subject to certain conditions. Moreover, Fed President Jerome Powell ruled out an interest rate hike anytime soon although the central bank has halted rate reduction policies.

Against this backdrop, a few stocks are expected to maintain their momentum in April, too. Five such stocks with a favorable Zacks Rank are: Micron Technology Inc. MU, Ciena Corp. CIEN, Guidewire Software Inc. GWRE, The Allstate Corp. ALL and Five Below Inc. FIVE. 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.

Image Source: Zacks Investment Research

Micron Technology Inc.

Micron Technology is benefiting from the rapidly expanding AI-driven memory and storage markets. The positive impacts of inventory improvement across multiple end markets are driving top-line growth.

MU has become a leader in the AI infrastructure boom due to strong demand for its high-bandwidth memory (HBM) solutions. Record sales in the data center end market and accelerating HBM adoption have been driving MU’s Dynamic Access Random Memory (DRAM) revenues higher.

The growing adoption of AI servers is reshaping the DRAM market as these systems require significantly more memory than traditional servers. This is boosting demand for both high-capacity DIMMs (Dual In-line Memory Module) and low-power server DRAM.

MU is capitalizing on this trend with its leadership in DRAM technology and a strong product roadmap that includes HBM4, slated for volume production in 2026. MU’s investments in next-generation DRAM and 3D NAND ensure that it remains competitive in delivering the performance needed for modern computing.

Micron Technology has an expected revenue and earnings growth rate of more than 100% each, respectively, for the current year (ending August 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 3.7% over the last seven days.

Ciena Corp.

Ciena has been benefiting from accelerating AI-led demand from cloud and service provider customers. Powered by strong cloud and service provider momentum, CIEN has gained 2 points of optical market share year to date and expects further gains in 2026.

CIEN’s first-quarter fiscal 2026 reflected a 33% year-over-year top-line gain, 111% EPS growth and a record $7 million order backlog, driven by accelerating AI-led demand from cloud and service provider customers.

CIEN continues to capitalize on WAN connectivity needs across subsea, long-haul, metro networks and DCI. Better pricing, Hyper-Rail innovation and cost optimization are expected to boost gross margins, ahead. For fiscal 2026, adjusted gross margin is projected at 43.5-44.5%.

With the first half exceeding expectations and supply challenges being managed, CIEN now expects first- and second-half gross margins to be roughly similar. It is managing supply conditions effectively and expanding capacity, but demand is expected to exceed supply for the next several quarters. For the second quarter, CIEN expects revenues of $1.5 billion (+/-$50 million).

Ciena has an expected revenue and earnings growth rate of 27.1% and more than 100%, respectively, for the current year (ending October 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 13.4% in the last 30 days.

Guidewire Software Inc.

Guidewire Software is benefiting from consistent execution, robust growth and sustained demand for large, multi-year deals that continued in the second-quarter of fiscal 2026. Momentum is improving as AI helps modernize core systems, speed up product development and strengthen relationships with customers and partners.

GWRE’s momentum in Guidewire Cloud bodes well. GWRE’s improving margins and higher operating income and cash flow guidance underscore better efficiency and a solid liquidity position. For fiscal 2026, gross margin is expected to be about 67%, up from the previous view of 66%. GWRE expects ARR for fiscal 2026 to be in the range of $1.229-$1.237 billion.

Guidewire Software has an expected revenue and earnings growth rate of 20.2% and 35.5%, respectively, for the current year (ending July 2026). The Zacks Consensus Estimate for current-year earnings has improved 2.9% in the last seven days.

The Allstate Corp.

The Allstate is witnessing consistent growth in premiums, thanks to prudent rate hikes and strategic acquisitions. Premiums rose 7.3% year-over-year in 2025 and we expect them to jump more than 8% in 2026. ALL’s focus on optimizing core operations has allowed it to redirect resources toward high-growth areas. Return on capital of 27.73% is well above the industry average of 5.87%.

ALL’s Protection Services revenues benefit from the solid performance of Allstate Protection Plans and Arity. Its cash-generating abilities are crucial for returning capital to its shareholders. Higher catastrophe losses are driving stronger pricing and increased insurance demand, creating new growth opportunities for ALL through expanded coverage offerings.

The Allstate has an expected revenue and earnings growth rate of 7.4% and -24.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2.4% over the last 30 days.

Five Below Inc.

Five Below is demonstrating clear momentum, underpinned by strong holiday performance and accelerating demand for its trend-right, value-driven assortment. FIVE’s focus on merchandising relevance, customer engagement, and experiential retail is translating into broad-based strength.

The brand continues to resonate with its core teen and pre-teen customers while expanding appeal to a wider value-conscious customer, reinforcing traffic and basket growth. FIVE’s pivotal shift in marketing spend toward digital and social media channels has successfully accelerated store traffic.

Reflecting this strength, management has revised its fiscal 2025 view upward after the robust holiday season. We estimate net sales to increase 22.4% year over year in fiscal 2025. FIVE’s continuous product innovation and enhanced store productivity should help sustain growth.

Five Below has an expected revenue and earnings growth rate of 11.3% and 17.5%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 13% over the last 30 days.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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Ciena Corporation (CIEN): Free Stock Analysis Report

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Five Below, Inc. (FIVE): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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