In this article, we will take a look at the 15 best high-volume stocks to buy today.
Investors are still trying to make sense of the latest market rally that began with a lot of optimism as we entered 2023. Major technology stocks as well as crypto currencies have gained significant value since the start of the year. However, the latest jobs report which showed the persistent strength of the labor market is causing many analysts to believe the Federal Reserve could continue its rate hikes, potentially crushing hopes for a soft landing.
“History is Not On Our Side”
According to a 2023 market outlook report by T. Rowe Price, the “history” is not on our side when we try to predict what would happen in 2023 when it comes to recession. The report said that 10 of the last 13 hiking cycles ended in recession in the US, and that the Fed has never lowered inflation by 4% or more without triggering a recession. The report also said that there has never been a spike in inflation above 5% that didn’t result in a recession.
Stock Market Outlook and Expectations for 2023
Overall, T. Rowe Price said that value stocks is a safer bet for 2023 as the firm said value stocks have historically outperformed growth stocks in high‑inflation periods.
“Value also appears historically inexpensive relative to growth, even though U.S. value benchmarks significantly outperformed their growth counterparts in 2022,” T. Rowe’s report said.
Interestingly, T. Rowe thinks small-cap stocks provide an opportunity for investors, especially if the US economy does not fall into a recession. The report said that historically, small-cap stocks recover more quickly than large-cap stocks during economic recoveries. T. Rowe also thinks the valuations of small-cap companies in the US appear more attractive than large-cap stocks.
The T. Rowe report also said that the pessimism around the economic future of China is “overblown”. It was referring to the massive battering of Chinese stocks in 2022 as the country suffered slowing growth and COVID-19-related problems. T. Rowe said China has take “demonstrable steps” to solve the COVID-19 problem and accelerate economic and earnings growth. The report said China’s leadership remains “pro-growth.” It noted that most of the growth in China came from the property sector, but that era is “coming to an end.”
Luis Louro / shutterstock.com
Our Methodology
For this article, we used stock screeners to identify stocks with three-month average volume of at least 3 million. From the long list of stocks we got after the first check, we chose 15 stocks that have the highest number of hedge funds invested in them, according to Insider Monkey’s database of 920 hedge fund holdings as of the end of the third quarter of 2022.
Best High Volume Stocks To Buy Today
15. AMC Entertainment Holdings, Inc. (NYSE:AMC)
Number of Hedge Fund Holders: 17
AMC Entertainment Holdings, Inc. (NYSE:AMC) remains one of the notable high-volume stocks. Its average volume over the past three months stands at over 31 million. In December 2022, Wedbush said that while AMC Entertainment Holdings, Inc. (NYSE:AMC) is working to solve its debt problem, the stock is still overpriced. The firm reiterated an Underperform rating for AMC Entertainment Holdings, Inc. (NYSE:AMC).
Wedbush’s analysts Alicia Reese and Michael Pachter recently noted that AMC Entertainment Holdings, Inc. (NYSE:AMC)’s movie theater business is on the path to normalization and the company has cash to “keep operating in that improving environment in the coming year.”
17 of the 920 hedge funds in Insider Monkey’s database had stakes in AMC Entertainment Holdings, Inc. (NYSE:AMC) at the end of the third quarter of 2022.
14. C3.ai, Inc. (NYSE:AI)
Number of Hedge Fund Holders: 18
Perhaps all the recent hype around AI tools like ChatGPT is giving a boost to this notable AI name. C3.ai, Inc. (NYSE:AI) stock volume is showing a significant rise as analysts begin to upgrade the stock citing long-term growth catalysts. C3.ai (NYSE:AI) shares have gained about 130% year to date as of February 3 on the back of the attention it’s getting thanks to the AI wave. Recently, investment firm D.A. Davidson & Co. started covering the stock with a Buy rating and a $30 price target. The firm called C3.ai, Inc. (NYSE:AI) a “truly scarce asset.” The firm’s analyst said that the rise of generative artificial intelligence would give C3.ai, Inc. (NYSE:AI) a chance to monetize its investments in the space.
13. SoFi Technologies, Inc. (NASDAQ:SOFI)
Number of Hedge Fund Holders: 25
Personal finance company SoFi Technologies, Inc. (NASDAQ:SOFI) ranks 13th in our list of the best high-volume stocks to buy according to hedge funds. Last month, SoFi Technologies, Inc. (NASDAQ:SOFI) shares gained after the company posted better-than-expected quarterly results and posted a 2023 adjusted EBITDA guidance that also surpassed expectations. SoFi Technologies, Inc. (NASDAQ:SOFI)’s average volume for the past three months according to Yahoo Finance stands at 44 million as of February 5.
12. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 26
Chinese EV company NIO Inc. (NYSE:NIO) ranks 12th in our list of the best high-volume stocks to buy right now. NIO Inc. (NYSE:NIO) recently said it delivered 8,506 vehicles in January, which shows a 12% decline on a YoY basis. As of the end of the third quarter of 2022, 26 hedge funds reported having stakes in NIO Inc. (NYSE:NIO).
11. Palantir Technologies Inc. (NYSE:PLTR)
Number of Hedge Fund Holders: 35
Palantir Technologies Inc. (NYSE:PLTR) stock has a three-month average volume of over 33 million. Last month, investment firm Mizuho started covering Palantir Technologies Inc. (NYSE:PLTR) with a Neutral rating and a $7 price target. The firm said that Palantir Technologies Inc. (NYSE:PLTR) has the capability to provide “significant” value for its customers. While the firm believes near-term growth opportunity could face difficulties, it said “ongoing global disruptions” can help Palantir Technologies Inc. (NYSE:PLTR) get a boost. Mizuho analyst Matthew Broome said that Palantir Technologies Inc. (NYSE:PLTR) has become a strategic partner to the US government.
Palantir Technologies Inc. (NYSE:PLTR) saw a sharp rise in hedge fund sentiment in the third quarter, as 35 hedge funds reported having stakes in Palantir Technologies Inc. (NYSE:PLTR) at the end of the period, compared to 26 funds in the previous quarter.
10. Snap Inc. (NYSE:SNAP)
Number of Hedge Fund Holders: 42
Snap Inc. (NYSE:SNAP) shares are on investors’ radar after the company posted quarterly results and gave a weak guidance. Investment firm UBS downgraded Snap Inc. (NYSE:SNAP) to Neutral from Buy, with a $10 price target. The analyst said that while Snap Inc. (NYSE:SNAP) has potential to grow its revenues, it’s operating in a highly competitive space.
Here is what RiverPark Large Growth Fund has to say about Snap Inc. (NYSE:SNAP) in its Q3 2022 investor letter:
“SNAP shares were our top detractor for the quarter on its July decline from weaker revenue growth relative to guidance (which had been reduced in May) and the fact that management did not provide an outlook for 3Q. Shares subsequently rebounded somewhat as the company announced better-than-expected near-term revenue growth, while announcing a broadbased cost restructuring.
Although the company continues to face near-term macro headwinds and difficult year-over-year comparisons from COVID-fueled quarters last year, we believe SNAP can reaccelerate its revenue growth to greater than 20% annually over the next several years. With TTM revenue of $4.5 billion (as compared with Meta’s $120 billion), 347 million daily average users (about 1/10 of Meta’s), and $14 TTM ARPU (about 1/3 of Meta’s), we believe SNAP has a long runway for both revenue growth and expanded profitability as it improves its platform functionality, continues to grow its audience (daily active users continue to grow at a double-digit rate), and expands its monetization.”
9. Carvana Co. (NYSE:CVNA)
Number of Hedge Fund Holders: 43
Used car company Carvana Co. (NYSE:CVNA) ranks 9th in our list of the best high-volume stocks to buy right now. Last month, Carvana Co. (NYSE:CVNA) said it will continue to buy and sell cars in Illinois following a settlement with the Illinois Secretary of State. Carvana Co. (NYSE:CVNA)’s license was suspended last year amid violations of Illinois’ vehicle code. The Wall Street Journal recently reported that Carvana Co. (NYSE:CVNA) has cut several jobs and also reduced working hours for its staff to cut costs and lighten its debt.
As of the end of the third quarter of 2022, 43 hedge funds had stakes in Carvana Co. (NYSE:CVNA), compared to 47 hedge funds in the previous quarter. The total value of these shares was over $656 million.
Steel City Capital made the following comment about Carvana Co. (NYSE:CVNA) in its Q3 2022 investor letter:
“As I write, Carvana Co. (NYSE:CVNA), a long-time short, is circling the drain. After reporting earnings, shares have been roughly cut in half while the company’s bonds are now priced anywhere from 35- to 45-cents on the dollar, with yields ranging from 25% to 40%. While the shares already experienced a steep decline during the past year, the postearnings sell-off appears to reflect investors finally acknowledging the company’s near-term liquidity issues. Raising capital – debt or equity – seems unlikely, if not impossible. Bulls had been holding on to the hope CVNA would meet its stated “goal” of generating “significantly positive EBITDA in FY 2023,” but management walked back that aspiration last week. I always thought the word “goal” reflected squishy language that never carried the same weight as “guidance” and drew conclusions accordingly. The difference is much the same as me telling my wife I have a “goal” of having washboard abs vs. “guidance” that I will have them by swimsuit season. The language was deliberate (and probably highly lawyered), and in my estimation, reflected an effort to give bulls something to cling on to without the company exposing itself to a lawsuit when they (inevitably) missed.”
8. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 47
Ford Motor Company (NYSE:F) ranks 8th in our list of the best high-volume stocks to buy today. A total of 47 hedge funds tracked by Insider Monkey reported owning shares in Ford Motor Company (NYSE:F) as of the end of the third quarter of 2022. The total worth of these stakes was over $1.2 billion. The biggest stakeholder of Ford Motor Company (NYSE:F) was Ken Fisher’s Fisher Asset Management which reported owning a $504 million stake in the company at the end of the September quarter.
Ford Motor Company (NYSE:F) shares recently fell after the company posted quarterly results. Ford Motor Company (NYSE:F) was downgraded to Sell by Deutsche Bank, which said that it is worried about “limited visibility” into Ford’s supply base.
7. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 69
Intel Corporation (NASDAQ:INTC) had a rough start to 2023 as the company posted weak quarterly results and gave guidance that concerned analysts and investors. According to media reports, Intel Corporation (NASDAQ:INTC) recently announced company-wide pay cuts to tackle the latest headwinds that are expected to remain for several months to come. Intel Corporation (NASDAQ:INTC) said its mid-level workers will see 5% salary cuts, while senior leaders’ salaries will be reduced by 10-15%. Intel Corporation (NASDAQ:INTC)’s CEO Pat Gelsinger will cut his base salary by 25%. Intel Corporation (NASDAQ:INTC) is also facing tough competition from companies like AMD.
At the end of the third quarter of 2022, 69 hedge funds had stakes in Intel Corporation (NASDAQ:INTC).
ClearBridge Investments made the following comment about Intel Corporation (NASDAQ:INTC) in its Q3 2022 investor letter:
“Also on the detractor side, Intel Corporation (NASDAQ:INTC) delivered a disappointing revenue miss and lowered full-year revenue and earnings guidance as COVID-19-driven demand for PCs abated (where Intel enjoys half its sales) and a delay in its flagship Sapphire Rapids CPU hurt its data center business. Despite these issues, we still believe Intel is an economically sensitive turnaround story with substantial upside.”
6. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 88
Tesla, Inc. (NASDAQ:TSLA) is one of the best high-volume stocks to buy today. Tesla, Inc. (NASDAQ:TSLA)’s average volume over the past three months stands at over 149 million. Hedge funds and retail investors are piling into the stock. As of the end of the third quarter of 2022, 88 hedge funds reported owning stakes in Tesla, Inc. (NASDAQ:TSLA), significantly up from 73 hedge funds in the previous quarter. Tesla, Inc. (NASDAQ:TSLA) shares performed remarkably well in January. Tesla, Inc. (NASDAQ:TSLA) is up about 70% over the past thirty days as of February 5.
Earlier this month, Elon Musk won the class-action shareholder lawsuit over his 2018 “funding secured” tweet.
Alger Capital made the following comment about Tesla, Inc. (NASDAQ:TSLA) in its Q4 2022 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) is an electric vehicle manufacturer with a significant technological lead in its large and rapidly growing addressable market. Shares underperformed during the quarter as it confronted transportation capacity issues that caused deliveries to fall short of estimates, as well as developing demand softness. Moreover, the demand softness became evident in increased Model 3 and Y discounts, the introduction of supercharging credits, some consumers deferring purchases until the Inflation Reduction Act EV purchase incentives become effective in January 2023, and other consumers who may be influenced by higher financing rates or deterred from initiating a high-ticket purchase. Despite these near-term difficulties, we remain constructive on EV innovation, adoption, and Tesla’s growth prospects over the long-term.”
5. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 89
As of the end of the third quarter of 2022, 89 hedge funds had stakes in Advanced Micro Devices, Inc. (NASDAQ:AMD). This makes Advanced Micro Devices, Inc. (NASDAQ:AMD) one of the most favorite stocks of elite hedge funds. It is also one of the best high-volume stocks to buy now, with a three-month average volume of over 62 million. Advanced Micro Devices, Inc. (NASDAQ:AMD) shares gained recently after the company posted quarterly results and commented about its future expectations. Advanced Micro Devices, Inc. (NASDAQ:AMD) said for the fiscal first quarter it expects its revenue to be between $5 billion to $5.6 billion. This revenue would show a 10% decline on a YoY basis. Advanced Micro Devices, Inc. (NASDAQ:AMD)’s management however said that it expects its data center and embedded systems businesses to remain strong.
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 140
Apple Inc. (NASDAQ:AAPL) remains one of the most popular stocks to buy according to hedge funds and retail investors. Despite headwinds in 2022, Apple Inc. (NASDAQ:AAPL) shares were bought by the smart money. Insider Monkey’s database of 920 hedge funds shows that 140 hedge funds had stakes in Apple Inc. (NASDAQ:AAPL) as of the end of the third quarter, significantly up from 128 hedge funds in the previous quarter.
Apple Inc. (NASDAQ:AAPL) shares are in the limelight after the company posted weak Q1 results. However, most of this weakness was due to FX headwinds and supply chain issues and analysts believe Apple Inc. (NASDAQ:AAPL) could gain from several tailwinds in 2023.
TimesSquare Capital made the following comment about Apple Inc. (NASDAQ:AAPL) in its Q3 2022 investor letter:
“Apple Inc. (NASDAQ:AAPL) designs and manufactures smartphones, personal computers, tablets, and wearable devices. The company reported better than expected revenues, though that came from a lower-than-expected supply chain impact. Apple called out pockets of weakness in wearables as well as home & accessories. Management referenced macroeconomic uncertainty and sounded somewhat guarded when commenting on fourth quarter expectations. In September, Apple introduced four new iPhones with retail prices kept at last year’s levels. Its shares edged forward by 1% in consideration of these developments. We trimmed the position after evaluating the channel which highlighted some consumer demand choppiness.”
3. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 156
While Alphabet Inc. (NASDAQ:GOOG) shares are wavering amid the pressure the company is feeling after the launch of ChatGPT, weak quarterly results and headwinds in the advertising business space, the stock is still one of the best high-volume stocks to buy now. Analysts believe Alphabet Inc. (NASDAQ:GOOG) is in a strong position to counter the ChatGPT threat as it’s a pioneer in the AI domain. Alphabet Inc. (NASDAQ:GOOG) recently revealed its ChatGPT competitor, Bard. As of the end of the third quarter of 2022, 196 hedge funds had stakes in Alphabet Inc. (NASDAQ:GOOG). This makes Alphabet one of the top stocks to buy according to hedge funds.
Here is what Stewart Asset Management has to say about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2022 investor letter:
“We invest in businesses with strong, resilient earnings growth which are less cyclical. In the pandemic recession of 2020, the aggregate earnings of the portfolios we manage did not decline year-over-year, and in fact grew, albeit modestly. Looking at the Great Recession which began at year-end 2007 and lasted to mid-year 2009 is helpful too. Our four largest current holdings in the portfolio weathered that period well. Alphabet (NASDAQ:GOOG), then called Google, reported earnings that doubled from 2007 to 2010.”
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 177
Meta Platforms, Inc. (NASDAQ:META) shares were devastated in 2022 amid major headwinds in the advertising market and the rise of competitors like Tik Tok. However, it seems Meta Platforms, Inc. (NASDAQ:META) has finally started to turn things around. It recently posted an upbeat quarter which shows growth is returning for the Facebook platform. Meta Platforms, Inc. (NASDAQ:META) is also one of the most favorite stock picks of elite hedge funds. Of the 920 hedge funds tracked by Insider Monkey, 177 funds had stakes in Meta Platforms, Inc. (NASDAQ:META). The biggest stakeholder of Meta Platforms, Inc. (NASDAQ:META) at the end of the September 2022 quarter was Ken Fisher’s hedge fund which had a $1.6 billion stake in the company.
Giverny Capital made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q4 2022 investor letter:
“Even if sector weightings explain most of our underperformance, I made some dubious decisions during the year. Most notably, I added to our holding in Meta Platforms, Inc. (NASDAQ:META), which declined 64% for the year. Meta began the year as a 4.3% weighting and ended as a 2.5% weighting, despite our incremental purchases.
I got plenty wrong about Meta, including the magnitude of the impact that Apple’s changes to privacy tracking would have on Meta’s value to advertisers. Meta’s two giant social media platforms, Facebook and Instagram, arguably may be weaker businesses than they were a year ago, thanks to Apple and the rising popularity of TikTok. Nevertheless, Meta remains an enormously profitable enterprise, with firehose levels of cash flow. It may be squandering some of that cash flow trying to develop the metaverse, but expense control problems are easier to address than a lack of cash flow. Belatedly, CEO Mark Zuckerberg seems to have recognized the need to match expense growth a little more closely to revenue growth. I never want to see anyone lose their job, but Meta hired many thousands of people to support growth that may not materialize. When Meta announced layoffs late in 2022, the stock began to recover.
To repeat what I wrote to you last quarter, aside from Meta, I don’t see any of our bottom five performers losing market share or competitive position.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 269
Amazon.com, Inc. (NASDAQ:AMZN)’s average volume over the past three months is more than 80 million. It is one of the best high-volume stocks to buy. As of the end of the third quarter of 2022, 269 hedge funds had stakes in Amazon.com, Inc. (NASDAQ:AMZN). This was significantly up from 252 hedge funds in the previous quarter. This shows that the hedge fund sentiment around Amazon.com, Inc. (NASDAQ:AMZN) is positive.
Amazon.com, Inc. (NASDAQ:AMZN) recently posted mixed quarterly results. However, analysts are bullish on Amazon.com, Inc. (NASDAQ:AMZN)’s long-term growth prospects. Recently, Morgan Stanley analyst Brian Nowak said that the headwinds Amazon.com, Inc. (NASDAQ:AMZN) is facing are transitionary and “macro driven.” The analyst said that he does not see a change in “multi-year opportunity” around Amazon.com, Inc. (NASDAQ:AMZN) shares. He maintained an Outperform rating and retained the “top pick” status for Amazon.com, Inc. (NASDAQ:AMZN).
RGA Investment Advisors made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2022 investor letter:
“There is unfortunately one stubborn problem that cannot be solved with a resumption of growth: the average company which experienced the surge increased investment pace. Amazon.com, Inc. (NASDAQ:AMZN)’s CEO, Andy Jassy summed it up well:
You just look in 2020, our retail business grew 39% year-over-year, at a $245 billion annual run rate, which is unprecedented, and it forced us to make decisions in that time to spend a lot more money and to go much faster in building infrastructure than we ever imagined we would. We built a physical fulfillment center footprint over 25 years that we doubled in 24 months. We made that decision even though we knew we might be overbuilding….but we decided we were going to shade on the side of consumers and sellers.
From Amazon’s perspective, had they not made those investments and e-commerce share gains persisted, the company would have risked losing market share to others with the temerity to invest. The silver lining for a company like Amazon is although they did not immediately grow into the substantial investments, they likely will do so over the coming years. Time will be the necessary condition to ease these investments that today are pressuring the margins of so many companies, including some in our portfolios.”
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Disclosure: None. 15 Best High Volume Stocks To Buy Today is originally published on Insider Monkey.
