Below we present the list of 5 Best Day Trading Stocks To Buy. For our methodology and a more comprehensive list please see the 11 Best Day Trading Stocks To Buy.
5. Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH)
Number of Hedge Fund Shareholders: 28
Average 3-Month Daily Volume: 21.8 million
5-Year Monthly Beta: 2.33
Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH) is another cruise line operator that’s proven to be a great day trading stock in recent years. Despite how beaten down Norwegian’s stock is, the company is in a good place in terms of bookings, with record demand lined up for the company’s fiscal 2023. Norwegian operates 29 vessels across three brands and more exposure to the luxury side of the market than rival Carnival, which might explain why hedge funds have been favoring it over CCL during the past two years.
Hedge fund ownership of Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH) hasn’t fallen as steeply in recent quarters as it has in the case of Carnival Corporation & plc (NYSE:CCL), but is nonetheless down by 28% since the end of 2020. GLG Partners sold off all of its 633,093 NCLH shares during Q2.
Miller Value Partners Opportunity Equity, which maintained a long position in NCLH as of June 30, discussed some of Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH) 2021 developments in the fund’s Q4 2021 investor letter:
“Norwegian Cruise Line Holdings Ltd (NCLH) continued to get hit from worsening headlines in relation to the Omicron variant. The stock declined 21.5% during the quarter following worse-than-expected 3Q results. The company reported revenues of $153M below consensus of $247M with EPS coming in at -$2.17 versus expectations for -$2.04. The company reported that 40% of its capacity was operating by the end of 3Q and they expect 75% to be operating by the end of 2021 with the full fleet back up and running by April 1, 2022. They also highlighted that they expect to be operating cash flow positive in late 1Q22 and profitable for the second half of 2022. The company announced a refinancing transaction, issuing $1Bn of new 1.125% exchangeable notes due 2027 and raising another $1.1Bn through the sale of 46.8M new shares at $23.64. Proceeds are being used to redeem up to $1.215Bn of debt with a blended interest rate of 8.1%, implying annual interest savings of $88M. The company was hit later in the quarter following CDC commentary that even vaccinated travelers should avoid cruises in addition to negative headlines around a new proposed carbon dioxide emission fee on ship owners. Based on Norwegian’s 2019 emissions, the proposed fee would be equal to 20% of NCLH’s Earnings Before Income and Taxes (EBIT) in 2019. The decision is not final and could take up to 2-years before countries decide to adopt the decision.”
4. Cleveland-Cliffs Inc. (NYSE:CLF)
Number of Hedge Fund Shareholders: 29
Average 3-Month Daily Volume: 12.9 million
5-Year Monthly Beta: 2.26
Cleveland-Cliffs Inc. (NYSE:CLF) is a manufacturer of various steel and carbon steel products, in addition to custom-made pellets and hot briquetted iron. As with many other manufacturing stocks, CLF shares have been volatile due to rising commodity prices and investor concerns about how an economic slowdown could impact demand. CLF shares are down by over 32% this year after being up by more than 50% at one point.
Cleveland-Cliffs Inc. (NYSE:CLF) pulled in $5.65 billion in revenue during Q3, missing estimates by $160 million, while its earnings of $0.29 per share was barely half the amount analysts were expecting. Demand from the automotive sector remains solid and the company expects costs to trend down during Q4 and into 2023, which could set its shares up for a rebound.
Hedge funds have been trading up a storm in Cleveland-Cliffs Inc. (NYSE:CLF) in recent quarters, as there was a 36% surge in ownership of the stock during Q1, followed by a 39% tumble in Q2. Ken Fisher’s Fisher Asset Management maintained the largest CLF position during Q2, owning 10.9 million shares.
3. Halliburton Company (NYSE:HAL)
Number of Hedge Fund Shareholders: 4
Average 3-Month Daily Volume: 10.1 million
5-Year Monthly Beta: 2.1
Oilfield services company Halliburton Company (NYSE:HAL) has been one of the biggest beneficiaries this year of a tapped out U.S. fracking market, which has the company poised to deliver strong profits, free cash flow, and growing margins for the foreseeable future. The company has already been able to pay down some of its debt this year while also more than doubling its dividend payouts.
For day traders, Halliburton Company (NYSE:HAL) makes for a compelling stock even during a potential prolonged upswing due to the ever-present volatility that oil prices provide, as well as the longer-term trend away from fossil fuels and towards clean energy, which will lie in weight to pounce on broader investor sentiment at any time.
The smart money has finally taken some interest in Halliburton Company (NYSE:HAL) again after several quarters of record low ownership. There was nearly a 50% jump in the number of shareholders long HAL during Q4 2021, which has been maintained over the following two quarters. Richard S. Pzena’s Pzena Investment Management has unloaded sizable portions of its HAL holding over each of the last two quarters to take advantage of the stock’s rise, but nonetheless maintained the largest long position in our database as of June 30, owning 16.7 million shares.
2. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Shareholders: 72
Average 3-Month Daily Volume: 72.2 million
5-Year Monthly Beta: 2.13
Ranking second is Tesla, Inc. (NASDAQ:TSLA), which is one of the most actively traded high-beta stocks on the market. After a tremendous run during 2020 and 2021, shares of the electric vehicle maker have cooled off considerably, falling by more than 40% from their peak.
Despite growing sales 8-fold between 2017 and 2021, Tesla, Inc. (NASDAQ:TSLA) still sold less than 1 million units last year, well below the figures of larger automakers. When coupled with the trend towards EVs, that gives the company an extended runway to continue growing, which could persist for many years, if not decades. While the long-term outlook for the company is bright, its valuation is likely to continue straddling the line between aggressive and pie-in-the-sky, which will continue to make it a target of short sellers and a great stock to day trade.
Tesla, Inc. (NASDAQ:TSLA) has never been a huge hit among the select group of hedge funds tracked by Insider Monkey’s database, but that changed somewhat during Q4, as ownership of the stock jumped by 44%. It’s since trended back down over each of the last two quarters, leaving the stock well outside the 30 most popular among hedge funds. Cathie Wood’s ARK Investment Management raised its stake in TSLA by 183% during Q3 to 4.08 million shares worth $1.08 billion on June 30.
Carillon Tower Advisers discussed some of Tesla, Inc. (NASDAQ:TSLA)’s planned moves in its Q2 2022 investor letter:
“Tesla, Inc. (NASDAQ:TSLA), the electric vehicle and clean energy company, is set to recall more than 100,000 cars in China over a potential safety risk and is reportedly delaying a plan to restore production at its Shanghai plant. CEO Elon Musk was reported to have said that the company would cut 10% of salaried staff and freeze hiring due to a bad feeling he has about the economy.”
1. Advanced Micro Devices, Inc (NASDAQ:AMD)
Number of Hedge Fund Shareholders: 87
Average 3-Month Daily Volume: 83.4 million
5-Year Monthly Beta: 2.05
Topping the list of best day trading stocks to buy is Advanced Micro Devices, Inc (NASDAQ:AMD), which has consistently been one of the most actively traded stocks on the market. It’s also a far more volatile stock than the offerings of other chipmakers.
AMD shares are down 60% from their peak as a substantially weakening PC market weighs on the company’s sales. In early October, AMD slashed its Q3 revenue estimate by more than $1 billion at the mid-point of its previous guidance range (which itself was already below analyst estimates), and lowered its gross margin expectations by 400 basis points.
Hedge fund ownership of Advanced Micro Devices, Inc (NASDAQ:AMD) has risen for four straight quarters, climbing by 38% during that time and making it the most popular chipmaker among hedge funds. Ken Fisher’s Fisher Asset Management owns a $1.92 billion stake in AMD as of June 30, holding 25.1 million shares.
The Baron Opportunity Fund is bullish on Advanced Micro Devices, Inc. (NASDAQ:AMD)’s opportunity to wrest further market share away from Intel Corporation (NASDAQ:INTC) and to grow its data center operations, as revealed in the fund’s Q2 2022 investor letter:
“Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global fabless semiconductor company focusing on high-performance computing technology, software, and products. AMD designs leading high-performance central and graphics processing units (known as CPUs and GPUs) and integrates them with hardware and software to build differentiated solutions for customers.
AMD has been gaining meaningful share in personal computing and server end markets over the past several years driven by the performance of its processors and technology and strong execution against its technology roadmap, and we believe share gains will continue over the coming years from a combination of AMD’s continued advancements and Intel’s stumbles in developing its leading-edge technology.
Additionally, the recently closed acquisitions of Xilinx and Pensando enhance AMD’s positioning within the data center, a key growth engine for the semiconductor industry, and Xilinx specifically opens up several new growth opportunities in new end markets like industrial, automotive, and communications. The company also generates significant cash flow, giving it capital allocation optionality for further M&A and returning capital to shareholders.”
For more of the latest stock picks worth considering for your portfolio, check out the 11 Best Cement and Construction Materials Stocks To Buy Now and the Top 10 Small-Cap Stocks With Highest Upside Potential.
Disclosure: None.
