We recently compiled a list of the 10 Best Stocks For Day Trading. In this article, we are going to take a look at where Aurora Innovation, Inc. (NASDAQ:AUR) stands against the other day trading stocks.
At the press conference held on September 18, Federal Reserve Chair Jerome Powell reiterated the central bank’s commitment to its dual mandate of achieving maximum employment and price stability. He noted that the U.S. economy has remained strong, with GDP increasing at a steady rate of 2.2% in the first half of the year, while inflation has significantly moderated.
While the labor market has softened somewhat, it continues to show strength, with the unemployment rate still relatively low at 4.2%. Inflationary pressures have reduced, although inflation remains slightly above the 2% target, as core PCE prices have risen by 2.7% over the past year.
In light of these developments, the Federal Open Market Committee (FOMC) chose to lower its policy interest rate by 50 basis points, a move intended to ease monetary policy. Powell explained that this action reflects growing confidence that labor market strength can be maintained, while inflation continues to decrease toward the Fed’s target. Powell emphasized the Fed’s flexibility in its approach and noted that future rate changes will depend on incoming data and the evolving economic landscape.
When questioned about the likelihood of future rate cuts, Powell said that each decision would be data-driven and made on a meeting-by-meeting basis. The Summary of Economic Projections (SEP) suggests a federal funds rate of 4.4% by the end of the year, with further reductions expected in the years ahead, which points to expectations of lower inflation and slightly higher unemployment.
Expert Opinion on Current Economic Conditions
At a CNBC interview on September 23, Stephanie Link, Chief Investment Strategist and Portfolio Manager at Hightower said that the market’s current state of confidence is driven by the belief that the Fed is successfully managing a soft landing and preparing for a cycle of rate cuts. She expects better-than-expected economic growth and earnings forecasts, despite the ongoing volatility in the market.
Link noted the strong recent data, which include improved retail sales, manufacturing, and housing permits, along with jobless claims at a four-month low. This backdrop supports earnings growth and any market weakness presents a buying opportunity, especially in sectors like technology, financials, and industrials.
When asked about her stock picks, Link highlighted Exxon, as she mentioned its low valuation, attractive forward earnings, and the recent acquisition of Pioneer. She expects this acquisition to drive significant production growth and sees multiple upcoming catalysts, such as an analyst meeting in December and new projects next year.
Although oil prices remain volatile due to geopolitical factors in the Middle East, Link downplayed the concerns about higher prices and said that the oil giant generates substantial profits even at lower oil prices. She said that the sector’s ability to return cash to shareholders through dividends and buybacks sees further upside in energy stocks despite the sector lagging recently.
Our Methodology
For this article, we identified over 35 stocks with a beta of over 2.5. Next, we narrowed the list to 10 stocks with the highest 5-year beta and average trading volume of over 10 million. The 10 best stocks for day trading are listed in ascending order of their beta. We also mentioned the hedge fund sentiment around each stock which was taken from Insider Monkey’s database of over 900 elite hedge funds.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A closeup of a self-driving hardware unit inside the dashboard of a passenger vehicle.
Aurora Innovation, Inc. (NASDAQ:AUR)
5-year Beta (monthly): 2.79
Average Volume: 10,459,444
Number of Hedge Fund Holders: 19
One of the best stocks for day trading, Aurora Innovation, Inc. (NASDAQ:AUR) is making significant strides in the self-driving technology sector in the U.S., focusing on its flagship product, the Aurora Driver. The comprehensive platform integrates self-driving hardware, software, and data services to create a system that is capable of navigating complex environments safely.
The Aurora Driver stands out due to its advanced perception technology, which combines various sensors to ensure extensive visibility, even in challenging weather conditions. The system is further improved by proprietary software that interprets intricate surroundings and continuously improves through real-world driving, virtual testing, and data sharing among vehicles.
Aurora Innovation (NASDAQ:AUR) is collaborating with a wide range of leaders in the transportation industry, including Continental, FedEx, Toyota, Uber, and Volvo Trucks, which strengthens its position and opens up multiple avenues for growth.
In the second quarter, the company made progress toward its commercial goals, fueled by positive feedback from customers eager to use the Aurora Driver. CEO Chris Urmson highlighted the company’s focus on a responsible technology approach and a strong safety culture, which he believes will help the company maintain its leadership in the industry as it moves toward a planned commercial launch by the end of this year.
A significant partnership with Uber Freight was announced in Q2, which saw the introduction of a pioneering Premier Autonomy program for carriers of all sizes. The collaboration resulted in a threefold increase in commercial volume and secured demand for a substantial portion of Aurora’s anticipated capacity for 2025.
The company is actively pursuing growth through strategic acquisitions and partnerships. It has aligned with Paccar to develop autonomous trucks using the Peterbilt and Kenworth platforms. In 2021, it also acquired OURS Technology, a lidar company, to advance its sensing capabilities. Additionally, partnerships with Volvo aim to create autonomous trucks that can efficiently transport goods.
In May, Aurora Innovation (NASDAQ:AUR) unveiled the Volvo VNL Autonomous truck at the ACT Expo, which showed the result of its partnership with Volvo. The company plans to begin hauling freight with these autonomous trucks soon, although a human safety operator will remain on board to take control if necessary. Upcoming pilot programs are expected to be announced later this year, which will further solidify its operational plans.
In terms of funding, the company is actively raising capital to support its ambitious roadmap. Recently, the company successfully secured $483 million, which surpassed its initial target of $420 million. This follows a substantial capital raise of $820 million completed just over a year ago. With a strong financial foundation, Aurora Innovation (NASDAQ:AUR) seems well-equipped to push toward its goal of a driverless commercial launch by the end of 2024.
Overall AUR ranks 7th on our list of the best stocks for day trading. While we acknowledge the potential of AUR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is promising and trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.