In this article, we will take a look at the best stocks to buy for the short term.
In a continuously evolving market, investing has become a game of timing and informed decision-making. For investors seeking short-term gains, it is critical to invest in the right stock at the right time to fully capitalize on earnings season volatility and macroeconomic factors.
On March 31, Reuters published “Morning Bid: March is the cruellest month,” outlining that the volatile first-quarter of FY26 ends with a muted note, overshadowed by the current war with Iran and a spike in energy prices. This increase has pushed average U.S. gas prices above $4 per gallon for the first time in over three years.
While the expected duration of the war shifts with each headline, the Wall Street Journal reported that Trump is ready to put an end to the war without opening the Strait of Hormuz a day earlier, the publication noted, adding that this update helped lift U.S. stock futures on the last day of an otherwise struggling March. On the other hand, those who hold a negative view about the war’s timeline focus on the Iranian attack on an oil tanker in the Gulf. As the IMF stated on Monday, “all roads lead to higher inflation and slower growth,” the article cited.
Keeping this general outlook of the economy in mind, and recognizing that investors must capitalize on timing to benefit from short-term market swings, we have compiled a list of the 7 Best Stocks to Buy for the Short Term.
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Our methodology
For this article, we used the Stock Analysis screener to filter for U.S. stocks with market capitalizations exceeding $2 billion that have a negative 1-year return and a 1-month return over 5%. Next, we shortlisted stocks with average trading volume over 1 million and upside potential of at least 15%. These stocks are then ranked by their upside potential as of March 30.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
7. Netflix, Inc. (NASDAQ:NFLX)
Netflix, Inc. (NASDAQ:NFLX) is among the 7 Best Stocks to Buy for Short Term. On March 30, TheFly reported that Citizens started coverage on Netflix, Inc. (NASDAQ:NFLX) with a Market Perform rating, but without a price target. According to the firm, the media and entertainment sector “is evolving alongside shifting consumer preferences.”
In a research note, the analyst pointed out AI acceleration and the subsequent streaming advancement, which suggests demand for tailored viewing. The Citizens analyst sees fewer near-term catalysts to drive Netflix, Inc. (NASDAQ:NFLX)’s performance and is waiting for a more attractive entry point.
On the same day, Needham reaffirmed a Buy rating on Netflix, Inc. (NASDAQ:NFLX) with a price target of $120. The firm believes the recent price hike by the company will result in nearly $1.7 billion in additional incremental revenue. This represents approximately 300 basis points of increased reported growth in North America in the current fiscal year.
Additionally, Needham projects about 40% of new subscribers in FY26 based on ads. That said, channel checks suggest a stable flow of new brand advertisers, with a solid programmatic volume growth for Netflix, Inc. (NASDAQ:NFLX), the firm noted.
Netflix, Inc. (NASDAQ:NFLX) is a California-based entertainment service provider incorporated in 1997. The main offerings of the company are streaming services, including TV series, documentaries, feature films, and games.
6. Hims & Hers Health, Inc. (NYSE:HIMS)
Hims & Hers Health, Inc. (NYSE:HIMS) is among the 7 Best Stocks to Buy for Short Term. On March 27, Canaccord Genuity reiterated a Buy rating on Hims & Hers Health, Inc. (NYSE:HIMS) with a price target of $30. This reaffirmation comes after the company’s launch of Novo Nordisk weight-loss solutions on its platform. First announced on March 9, the partnership involves access to Wegovy and Ozempic injections across all dosage levels on its platform.
Canaccord Genuity highlighted that the revenue outlook appears challenged as the compounded-to-branded transition unfolds. Even then, the firm remains positive on Hims & Hers Health, Inc. (NYSE:HIMS) due to the Novo partnership, which it believes will contribute to the long-term growth momentum.
A day earlier, BofA Securities maintained a Neutral rating and a price target of $23 on Hims & Hers Health, Inc. (NYSE:HIMS). This follows the company’s announcement related to its GLP-1 subscription service. The firm named many factors that create ambiguity, including whether a standalone margin exists for the medicine. That said, the firm views the company as transitioning from a low-cost provider to an average-cost provider of GLP-1 medications.
Hims & Hers Health, Inc. (NYSE:HIMS) is a California-based operator of a consumer-first health and wellness platform. The company provides a range of products and services, including curated prescription and non-prescription health and wellness.
While we acknowledge the potential of HIMS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HIMS and that has 100x upside potential, check out our report about the cheapest AI stock.
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