Looking for high-potential stocks after the recent market dip? These five could offer strong upside for long-term investors. After a sharp market correction, many investors are wondering: Is this the rebound—or just a temporary rally before another drop? With interest rates, inflation, and political uncertainty all in play, market timing is more dangerous than ever. That’s why the smart approach is to ignore the noise and focus on what you can control—buying great businesses at reasonable prices and holding them for the long term. In this article, we dive into five standout stocks that have dropped significantly but still show strong fundamentals, undervaluation, or growth potential. These aren’t speculative flyers—they’re companies with real revenue, strategic advantages, and reasons to believe in their long-term success.
Let’s take a look at the five top stock ideas for April 2025.
1. Nextracker (Ticker: NXT)
Sector: Solar Energy & Infrastructure
Current Price: ~$45
Analyst Upside: +24%
Valuation P/E (fwd): ~13
Morningstar Fair Value: $31 (2 stars)
Nextracker designs and manufactures solar trackers and related software for large-scale solar installations. With a 30% market share, it’s a dominant player in an industry that aligns with long-term trends like sustainability and clean energy infrastructure.
Despite concerns about policy risk—especially if political changes stall renewable investments—Nextracker remains a compelling pick. Wall Street analysts are bullish, with a potential upside of 24%. Factor analysis rates it highly for valuation, profitability, and financial health.
Key financials suggest the company is undervalued relative to peers:
- Forward P/E: 13
- EV/EBITDA and price-to-cash flow: low compared to sector
- Net margin: ~20% (vs. 5-year average of 9.7%)
- Return on assets: 18%
This indicates a high return on the company’s physical infrastructure—important for hardware-based businesses.
The total market cap is $6.5 billion with low debt and a solid cash position. While short-term EPS growth may be muted (next year is estimated at just 0.5%), EBIT growth forecasts and profitability trends look promising.
If the price drops to ~$31 (Morningstar’s fair value), this could become a deep-value opportunity. But even at today’s price, long-term investors could see strong upside.
Bottom Line:
A leader in solar infrastructure with solid fundamentals. Not without political risk, but worth consideration for ESG-oriented investors.
2. AppLovin (Ticker: APP)
Sector: Mobile Advertising Technology
Current Price: ~$135
Analyst Upside: +60%
Valuation P/E (fwd): High but with rapid growth
Zacks Rank: Strong Buy
AppLovin operates at the intersection of mobile gaming and advertising tech. If you've ever played a mobile game and seen an ad, there's a good chance AppLovin had something to do with it.
It’s a fascinating business model that scales fast, and the company’s profitability has skyrocketed:
- EBIT margin: 50%
- Net profit margin: 33%
- Return on equity and capital: exceptionally high
The PEG ratio (price-to-earnings-growth) is under 1—typically a sign of undervaluation when growth is factored in.
While AppLovin’s current valuation is high and its market cap has ballooned to over $100 billion, its fundamentals still support the premium—if growth continues. The company turned profitable in 2023, moving from negative margins to best-in-class profitability in just a year.
Founder-led (CEO Adam Foroughi still holds ~2.6% of shares), AppLovin benefits from strong leadership and alignment of interests. That said, many analysts are cautious. Price targets range widely—from as low as $200 to as high as $350.
AppLovin's share price fell sharply—by over 50%—after an explosive run. Such volatility can be a risk or an opportunity, depending on your time horizon and conviction in the company’s long-term growth.
Bottom Line:
A high-risk, high-reward play on mobile ad tech. Valuation is rich, but fundamentals and momentum are strong. A volatile stock best suited for growth-focused investors.
3. Brinker International (Ticker: EAT)
Sector: Restaurants & Franchising
Current Price: ~$142
Analyst Upside: +26%
Morningstar Fair Value: $95 (2 stars)
Brinker International owns and operates casual dining brands like Chili’s and Maggiano’s Little Italy. The brand may bring back memories—good or bad—but the stock is worth a fresh look.
The company has been considered a top pick on Seeking Alpha’s factor analysis platform due to improved profitability, reasonable valuation, and increasing investor sentiment. However, it's not without its red flags:
- Current P/E: ~20 (following a price drop)
- Profit margin: improving, but still modest
- Return on capital: rising, but 5-year averages are mediocre
Brinker is a momentum stock with an uneven history. At its highs, it’s been overvalued; during drawdowns, it has presented value. Following a 70% drop, recent momentum has lifted it significantly, but whether it can maintain this depends on consumer demand and inflation control.
Analyst forecasts suggest average returns of 1%–18% annually, depending on how earnings evolve. Morningstar is cautious, while factor-based models remain optimistic.
Bottom Line:
Solid restaurant operator with improving metrics and potential upside. Less exciting long-term, but worth watching if value and momentum align.
4. Barclays (Ticker: BCS)
Sector: Financial Services / Banking
Current Price: ~$15
Analyst Upside: +5%
P/E (fwd): ~6
Zacks Rank: Buy
Barclays is one of the UK’s biggest banks and may represent a value play in today’s uncertain environment. While bank stocks carry their own set of risks—exposure to macroeconomic trends, interest rate sensitivity, and regulatory issues—Barclays stands out on several metrics:
- Very low P/E ratio (~6)
- Forecasted earnings growth: 10–15%
- Net margins: high and improving
- Payout ratio: below 1 (safe dividend coverage)
Although Morningstar gives it a conservative valuation and low star rating, analysts expect a meaningful earnings rebound that could drive returns of over 20% per year—an impressive figure for a large bank.
Its biggest strengths are momentum and valuation. But as with all financial institutions, banks are complex and often opaque. Unless you’re deeply familiar with the sector, caution is warranted.
Bottom Line:
Undervalued bank with earnings growth potential. Not a flashy growth story, but a possible value investment for those comfortable with financials.
5. SkyWest (Ticker: SKYW)
Sector: Regional Airlines
Current Price: ~$91
Analyst Upside: +40%
P/E (fwd): ~10
Zacks Rank: Strong Buy
SkyWest operates as a regional airline holding company. It’s one of those stocks that often flies under the radar—literally and figuratively—but has seen renewed interest due to rising travel demand and improving fundamentals.
- Forward P/E: ~10
- Net margin: stable
- Free cash flow: improving
- Valuation metrics: favorable
However, SkyWest lacks a strong competitive moat, which limits its long-term appeal. Airline stocks, in general, are notoriously cyclical and sensitive to oil prices, economic shocks, and operational disruptions.
That said, with a price target of $111 and EPS growth forecasts, SkyWest could return 15–30% annually if it meets expectations and maintains margin improvements.
Its PEG ratio is slightly above 1, suggesting the price is fair relative to expected growth. But profitability and capital efficiency metrics aren’t quite as strong as those in higher-quality sectors.
Bottom Line:
A potentially undervalued airline stock with decent short-term upside. Long-term quality is questionable, but momentum and valuation make it interesting for tactical investors.
Final Thoughts: Quality, Value, or Growth? Why Not All Three?
The five stocks highlighted—Nextracker, AppLovin, Brinker, Barclays, and SkyWest—offer different strengths across sectors and styles.
- Looking for value? Barclays trades at a deep discount and could surprise on the upside.
- Want high growth? AppLovin might fit the bill if you're comfortable with volatility.
- Prefer profitability and strong margins? Nextracker and SkyWest show promising fundamentals.
- Favor momentum trades with technical support? Brinker offers that angle.
No matter which you choose, the key is aligning each investment with your personal goals, risk tolerance, and long-term strategy. And if none of these stocks fit your style, let them serve as inspiration for further research.
What’s your take on these five stocks? Are you buying the dip—or waiting for the next one? Share your thoughts in the comments.
Want exclusive monthly updates on value plays, growth stocks, and portfolio moves?
Join our newsletter to get curated insights from the Business Investors team, backed by data and clear strategy.
