March’s Hottest Stocks: 5 Buys to Consider Now

As we conclude the Q4 2024 earnings reporting cycle, the overall market trends look encouraging, though expectations for earnings growth in 2025 have softened. Stocks that have led the market are starting to recover from recent price declines, indicating that the uptrend in the S&P 500 may persist, albeit at a slower pace than seen in 2024. Below, we explore five stocks that are anticipated to show notable gains and are regarded as worthwhile additions to your investment watchlist in March, given their potential to outperform both their industry counterparts and the market as a whole.

1) NVIDIA: Expanding Business Amid Growing Automotive Demand

NVIDIA Today

$120.15 -11.13 (-8.48%)

As of 02/27/2025 04:00 PM Eastern

52-Week Range

$75.61

▼

$153.13

Dividend Yield

0.03%

P/E Ratio

47.28

Price Target

$169.62

NVIDIA’s recent Q4 results showed positive developments, particularly in its automotive division, which saw a growth of nearly 30% year-over-year, primarily fueled by rising demand for driver-assist technology crucial for electric vehicles (EVs) and autonomous driving. Although this segment currently constitutes a small portion of NVIDIA's business, analysts believe it could evolve into a billion-dollar revenue source in the coming years. This would not only support ongoing growth but also diversify the company's focus from its dominant data center revenue.

While analysts have issued mixed responses to NVIDIA’s performance, with some downgrades and price target adjustments, the overall sentiment remains optimistic. There is a consensus price target indicating nearly 30% upside potential, with further upside possible at the high end. Currently, 91% of analyst ratings lean towards Buy or better.

2) Salesforce: Positive Sentiment with Forecasted Upside Potential

Salesforce Today

$294.80 -12.53 (-4.08%)

As of 02/27/2025 03:59 PM Eastern

This is a fair market value price provided by Polygon.io. Learn more.

52-Week Range

$212.00

▼

$369.00

Dividend Yield

0.54%

P/E Ratio

48.49

Price Target

$365.32

Salesforce released a mixed earnings report with cautious guidance, prompting some analysts to lower their price targets. Still, despite these adjustments, data shows increasing clarity in positive sentiment regarding Salesforce’s performance, highlighting a growth forecast of approximately 20% above a critical support level.

The earnings report revealed solid high single-digit growth, strong profit margins, and free cash flow, leading to enhancements in the company’s balance sheet as well as capital returns to shareholders, which are expected to contribute significantly in 2024 through dividends and buybacks.

3) 3M: A Giant on the Recovery Path

3M Today

$150.48 +3.05 (+2.07%)

As of 02/27/2025 03:59 PM Eastern

This is a fair market value price provided by Polygon.io. Learn more.

52-Week Range

$75.40

▼

$155.00

Dividend Yield

1.94%

P/E Ratio

19.93

Price Target

$148.87

3M is a former Dividend King that had to reduce its dividends to stabilize after overcoming past legal hurdles. Heading into 2025, the company is showing signs of improvement, with growing cash flows and a solid outlook for capital returns. Predictions suggest a return to organic growth, expanding profit margins, and a strengthened capital return strategy, including buybacks and a dividend expected to annualize to 0.5%. Analysts express a positive outlook for 3M as coverage widens and the consensus rating moves towards a Moderate Buy.

4) SoundHound AI: Stock Pullback Indicates Buying Opportunity

SoundHound AI Today

$9.21 -0.36 (-3.76%)

As of 02/27/2025 04:00 PM Eastern

52-Week Range

$3.50

▼

$24.98

Price Target

$12.36

SoundHound AI recently saw its stock price decline following NVIDIA’s decision to sell its stake. Although this news seemed detrimental initially, it does not change SoundHound’s optimistic growth trajectory. During the period NVIDIA held shares, SoundHound's stock appreciated significantly, providing a window for profit-taking. Now, with the stock trading near long-term lows and showing rapid revenue growth and business momentum, analysts see potential for a recovery above $12.50, representing a 30% increase, with the possibility of reaching $22.50 later in the year.

5) Shopify: Leading the Charge in Upgrades

Shopify Today

$110.72 -2.51 (-2.22%)

As of 02/27/2025 03:59 PM Eastern

This is a fair market value price provided by Polygon.io. Learn more.

52-Week Range

$48.56

▼

$129.38

P/E Ratio

71.43

Price Target

$126.31

Shopify is among the most upgraded stocks post-Q4 reporting season, receiving numerous positive mentions in February alone. Expectations are strong for this stock, which analysts rate as a Moderate Buy, looming a potential upside of at least 10%, and more likely even 20% or more by year-end.

The eCommerce platform’s user-friendliness, value proposition for clients, and capacity to enhance sales and margins have bolstered its appeal. Shopify's Q4 results reflected accelerated growth compared to both the previous quarter and year, supported by a strong performance in both revenue and profits, conveying a positive guidance outlook for 2025.

Conclusion

As investors contemplate these five stocks, each presents unique growth prospects and value considerations, making them worthy of consideration for your March investments.

Stocks, Investing, Growth