Motley Fool's Top Stock Picks for April 2025
Motley Fool's Top Stock Picks for April 2025: Growth and Diversification in a Volatile Market
The growth-heavy Nasdaq Composite is down over 10% year-to-date in 2025, underperforming the S&P 500 and Dow Jones Industrial Average, though all three are experiencing losses. Despite this volatility, growth stocks and ETFs remain attractive options for long-term investors who can tolerate some risk. Motley Fool analysts highlight several compelling choices for April 2025.
Broadcom (AVGO), a network connectivity and semiconductor giant, is one such recommendation. While initially surging after its fiscal 2024 fourth-quarter results, the stock has since declined, becoming one of the worst-performing S&P 500 components this year. However, Broadcom's growing AI sector, contributing over 25% of total revenue, offers significant long-term potential. Its XPU accelerator chips are presented as a cost-effective alternative to GPUs, though reliance on a few hyperscaler customers presents both growth opportunities and risks. Despite this dependence, Broadcom boasts a diverse portfolio and trades at a reasonable forward price-to-earnings ratio of 25.7, with a growing 1.4% dividend yield.
Trimble (TRMB), a workflow technology company, provides another compelling investment opportunity. Its solutions, encompassing hardware, software, and services, cater to various sectors, including construction, geospatial, transportation, utilities, and agriculture. Trimble’s focus on improving productivity offers resilience even during economic downturns. The company’s organic annualized recurring revenue grew by 16% in 2024, with projected 13% to 15% growth in 2025. This consistent growth trajectory, driven by the increasing adoption of digital technology and advanced analytics, positions Trimble for a bright future.
For investors seeking broad exposure to leading growth stocks, the Invesco QQQ Trust (QQQ) ETF is suggested. Tracking the top 100 non-financial companies on the Nasdaq, it offers diverse exposure to AI, including holdings like Apple, Microsoft, and Nvidia, as well as other growth sectors such as electric vehicles (through Tesla) and industrial gases (through Linde). With a low expense ratio of 0.2%, the Invesco QQQ Trust boasts a total return exceeding 1,000% since 2010, significantly outpacing the S&P 500’s 551% return during the same period.
Beyond these, Motley Fool also recommends Shopify (SHOP), e.l.f. Beauty (ELF), and Coupang (CPNG) as long-term growth stocks, noting their potential for substantial returns despite current market volatility. These picks are highlighted for their strong growth potential and diverse market positions, though investors should be aware of the risks associated with growth stocks and global economic uncertainty.
The growth-heavy Nasdaq Composite is down over 10% year-to-date in 2025, underperforming the S&P 500 and Dow Jones Industrial Average, though all three are experiencing losses. Despite this volatility, growth stocks and ETFs remain attractive options for long-term investors who can tolerate some risk. Motley Fool analysts highlight several compelling choices for April 2025.
Broadcom (AVGO), a network connectivity and semiconductor giant, is one such recommendation. While initially surging after its fiscal 2024 fourth-quarter results, the stock has since declined, becoming one of the worst-performing S&P 500 components this year. However, Broadcom's growing AI sector, contributing over 25% of total revenue, offers significant long-term potential. Its XPU accelerator chips are presented as a cost-effective alternative to GPUs, though reliance on a few hyperscaler customers presents both growth opportunities and risks. Despite this dependence, Broadcom boasts a diverse portfolio and trades at a reasonable forward price-to-earnings ratio of 25.7, with a growing 1.4% dividend yield.
Trimble (TRMB), a workflow technology company, provides another compelling investment opportunity. Its solutions, encompassing hardware, software, and services, cater to various sectors, including construction, geospatial, transportation, utilities, and agriculture. Trimble’s focus on improving productivity offers resilience even during economic downturns. The company’s organic annualized recurring revenue grew by 16% in 2024, with projected 13% to 15% growth in 2025. This consistent growth trajectory, driven by the increasing adoption of digital technology and advanced analytics, positions Trimble for a bright future.
For investors seeking broad exposure to leading growth stocks, the Invesco QQQ Trust (QQQ) ETF is suggested. Tracking the top 100 non-financial companies on the Nasdaq, it offers diverse exposure to AI, including holdings like Apple, Microsoft, and Nvidia, as well as other growth sectors such as electric vehicles (through Tesla) and industrial gases (through Linde). With a low expense ratio of 0.2%, the Invesco QQQ Trust boasts a total return exceeding 1,000% since 2010, significantly outpacing the S&P 500’s 551% return during the same period.
Beyond these, Motley Fool also recommends Shopify (SHOP), e.l.f. Beauty (ELF), and Coupang (CPNG) as long-term growth stocks, noting their potential for substantial returns despite current market volatility. These picks are highlighted for their strong growth potential and diverse market positions, though investors should be aware of the risks associated with growth stocks and global economic uncertainty.
