5 Must-Buy Momentum Stocks for March After a Disappointing February

Market Overview - U.S. stock markets experienced a significant rally in 2024 following a strong bull run in 2023, but faced a downturn in February 2025 with major indexes declining: Dow by 1.6%, S&P 500 by 1.4%, and Nasdaq Composite by 4%, marking its worst month since April 2024 [1] - Concerns regarding the Trump administration's tariff and trade policies and their potential impact on U.S. economic growth and inflation persist [2] - Geopolitical conflicts in the Middle East and other regions have also raised concerns, contributing to a decline in consumer confidence and sentiment indexes in February [3] Stock Performance and Recommendations - Despite the market downturn, certain stocks are expected to maintain momentum in March, with five stocks identified as having strong potential for double-digit returns: Affirm Holdings Inc. (AFRM), AppLovin Corp. (APP), Robinhood Markets Inc. (HOOD), Carvana Co. (CVNA), and Sprouts Farmers Market Inc. (SFM) [4][5] Affirm Holdings Inc. (AFRM) - Affirm Holdings reported fiscal Q2 2025 earnings that significantly exceeded consensus estimates, driven by diverse revenue streams including merchant network fees and interest from loans [7] - Key partnerships, such as with Apple Pay and Hotels.com, and expansion into the UK are expected to enhance growth [8] - Expected revenue and earnings growth rates for the current year are 36.9% and 89.2%, respectively, with a short-term price target indicating a potential upside of 40.3% [9][10] AppLovin Corp. (APP) - AppLovin operates a software platform for mobile app developers, showing strong fundamentals and growth potential, with Q4 adjusted EPS of $1.73 beating estimates [11][12] - The company has an expected revenue and earnings growth rate of 20.4% and 51.7%, respectively, with a short-term price target suggesting a maximum upside of 99.5% [13][14] Robinhood Markets Inc. (HOOD) - Robinhood provides a financial services platform allowing users to invest in various assets, with anticipated growth in trading revenues due to increased retail participation [15][16] - Expected revenue and earnings growth rates for the current year are 25.3% and 38.5%, respectively, with a price target indicating a potential upside of 110% [17] Carvana Co. (CVNA) - Carvana's acquisition of ADESA's U.S. operations enhances its logistics and auction capabilities, positioning it for growth in the used car market [18][19] - Expected revenue and earnings growth rates for the current year are 22.1% and 97.5%, respectively, with a price target suggesting a maximum upside of 50.2% [20] Sprouts Farmers Market Inc. (SFM) - Sprouts Farmers focuses on product innovation and e-commerce, leading to better-than-expected Q4 results and a positive outlook for 2025 [21][22] - Expected revenue and earnings growth rates for the current year are 12.1% and 21.6%, respectively, with a price target indicating a potential upside of 34.8% [23]