In this article, we discuss the 5 best stocks for day trading. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Stocks For Day Trading.
5. Meten Holding Group Ltd. (NASDAQ:METX)
Number of Hedge Fund Holders: 3
52-Week Range: $0.28-$4.27
As education stocks in China deal with a government crackdown, Meten Holding Group Ltd. (NASDAQ:METX), one such firm, has pivoted to the crypto business. In late October, the share price of the firm jumped by more than 13% after it announced that it had signed a deal with AGM, a fintech firm, to speed up the blockchain and crypto mining business of the former. Meten has also ordered some crypto mining machines from AGM as part of the agreement.
In early September, Meten Holding Group Ltd. (NASDAQ:METX) had priced a $60 million stock offering. The firm planned to offer 200 million ordinary shares at $0.30 per share, saying it would use the proceeds for capital expenditure and general corporate purposes.
At the end of the second quarter of 2021, 3 hedge funds in the database of Insider Monkey held stakes worth $1 million in Meten Holding Group Ltd. (NASDAQ:METX), up from 2 in the previous quarter worth $772,000.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Meten Holding Group Ltd. (NASDAQ:METX) with 162,700 shares worth more than $158,000.
4. Zosano Pharma Corporation (NASDAQ:ZSAN)
Number of Hedge Fund Holders: 3
52-Week Range: $0.32-$3.06
Zosano Pharma Corporation (NASDAQ:ZSAN) is a clinical-stage biotech firm with solid fundamentals. In August, the firm beat market expectations on earnings per share and revenue for the second quarter by $0.02 and $0.01 million respectively. In July, it was also granted a patent for the development of a drug related to the treatment of migraines.
Earlier in May, the share price of Zosano Pharma Corporation (NASDAQ:ZSAN) had soared 23% on the back of data published in The Journal of Headache and Pain that revealed that Qtrypta, a drug being developed by the firm, was safe and offered relief for migraines when given over the course of a year.
At the end of the second quarter of 2021, 3 hedge funds in the database of Insider Monkey held stakes worth $1.3 million in Zosano Pharma Corporation (NASDAQ:ZSAN), up from 1 in the preceding quarter worth $199,000.
3. FuelCell Energy, Inc. (NASDAQ:FCEL)
Number of Hedge Fund Holders: 14
52-Week Range: $2.01-$29.44
FuelCell Energy, Inc. (NASDAQ:FCEL) makes and sells fuel cell power solutions. Since the company operates in the clean energy business, the stock has rallied since US lawmakers approved a new $3.5 trillion spending plan of US President Biden that increases tax breaks for clean energy firms and incentivizes adoption of their products. However, the final approval for the plan is facing hurdles in the Senate where there has been increased debate about the incentives being offered to businesses to switch to clean energy.
As a result, clean energy stocks like FuelCell Energy, Inc. (NASDAQ:FCEL) have pulled back in recent weeks. B Riley recently lowered the price target on the stock to $8 from $10 and reiterated a Neutral rating.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in FuelCell Energy, Inc. (NASDAQ:FCEL) with 5.8 million shares worth more than $52 million.
2. New Oriental Education & Technology Group Inc. (NYSE:EDU)
Number of Hedge Fund Holders: 39
52-Week Range: $1.68-$19.97
A Chinese crackdown against dual-listed firms has hurt nearly all Chinese stocks trading in the United States. But New Oriental Education & Technology Group Inc. (NYSE:EDU) has suffered because of new regulation in China that bans for-profit tutoring. As a result, the company has shifted the main business to non-core subjects to circumvent the ban. A housekeeping services firm has also been set up to help with the revenue flow.
However, investment advisory Morgan Stanley recently upgraded New Oriental Education & Technology Group Inc. (NYSE:EDU) stock to Overweight from Equal Weight, noting that the overseas businesses of the firm and expansion into new areas would bear fruit in the long-term.
At the end of the second quarter of 2021, 39 hedge funds in the database of Insider Monkey held stakes worth $590 million in New Oriental Education & Technology Group Inc. (NYSE:EDU), down from 45 in the preceding quarter worth $2 billion.
In its Q1 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and New Oriental Education & Technology Group Inc. (NYSE:EDU) was one of them. Here is what the fund said:
“New Oriental Education shares declined in the quarter, seemingly on account of two notable drivers. First, Chinese online education is currently under a regulatory microscope, although the online tutoring area is not central to New Oriental’s business. We continue to believe that, as a large player in a highly fragmented market, New Oriental is well-positioned to manage regulatory change and offers regulators an easier touchpoint to regulate and monitor than individual mom & pop operators.
As regulatory fears hit the after-school tutoring market, we think New Oriental, a leading player in brick-and-mortar after-school tutoring, could gain strength. We think the long-term backdrop for after-school tutoring remains quite favorable. Significant scale advantages and a highly cash generative model with just approximately 5% market share indicate that New Oriental has potential to grow at a high rate, in our opinion. Further, movements by another investor in New Oriental in late March 2021 prompted indiscriminate selling of shares. Those sales left shares trading at a compelling valuation, in our opinion, so we acted by adding to our position. We think New Oriental remains poised to grow earnings at approximately 25% annual rate in the coming years.”
1. ON Semiconductor Corporation (NASDAQ:ON)
Number of Hedge Fund Holders: 44
52-Week Range: $23.86-$55.57
Semiconductor stocks have been very volatile lately because of the uncertainty in chip prices. ON Semiconductor Corporation (NASDAQ:ON), a chipmaker based in Arizona, has largely benefited from this, posting market-beating earnings in the third quarter as chip prices touch record highs. On November 1, the company reported earnings per share of $0.87 for the third quarter, beating predictions by $0.13. The revenue over the period was $1.7 billion, beating estimates by $30 million.
Bank of America analyst Vivek Arya has a Buy rating on ON Semiconductor Corporation (NASDAQ:ON) stock with a price target of $60. Arya identifies “newfound pricing power and supply discipline” of chipmakers as the reason behind the positive outlook.
At the end of the second quarter of 2021, 44 hedge funds in the database of Insider Monkey held stakes worth $1 billion in ON Semiconductor Corporation (NASDAQ:ON), up from 41 in the previous quarter worth $1.2 billion.
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