Best Stocks for Day Trading: 12 Stock Picks

In this article, we examine the 12 Best Stocks for Day Trading.

The goal of a successful trader is to make the best trades. Money is secondary. This observation from Alexander Elder, a best-selling author and trader, captures the essence of day trading: it’s less about chasing profits and more about making smart, disciplined decisions.

There is an old trading adage that says, “The trend is your friend until the end when it bends.” The reminder is timeless. For day traders, who live and breathe by intraday movements, recognizing when the “bend” is coming is often the difference between a winning and losing trade.

Day trading relies on capturing quick price movements that play out within hours, minutes, or even seconds. A typical day trader enters and exits positions in a short span of time, and often manages several trades within the same session. While stocks remain the primary focus for traders, this approach also extends to other asset classes, including ETFs, commodities, currencies etc. The strategy is highly dependent on short-term market swings, and while it can generate solid gains, it also carries higher risk of losses. The reality, however, is that most casual traders struggle to sustain long-term success, making discipline and risk management non-negotiable.

Market veterans often compare day trading to diamond cutting; both require precision, patience, and the right timing. One wrong move can ruin the outcome, but the right cut, at the right moment, can create something brilliant.

READ ALSO: 15 Best Multibagger Stocks to Invest in Right Now and 10 Best High Beta Stocks To Buy Now.

That environment feels especially relevant now. As Jim Cramer recently noted on Mad Money, today’s market can feel unhinged – overpriced stocks continue to climb, companies posting strong results are punished, and short squeezes appear out of nowhere.

September has only added more colour to the discussion. In an early September interview with CNBC, Raymond James CIO Larry Adam expressed surprise at markets’ resilience after a strong summer, suggesting caution as inflation and Fed policy remain in focus. By contrast, Rich Saperstein, CIO at Treasury Partners, argued that the backdrop still favors equities, with moderating inflation, strong GDP, and robust earnings offering support.

For day traders, this clash of perspectives is precisely what creates opportunity. Differing outlooks, frequent data releases, and Fed uncertainty mean that price swings are here to stay. For those with the skill and discipline, there are ample opportunities to profit.

Given this backdrop, let’s turn to our selection of the 12 best stocks for day trading in today’s market.

Best Stocks for Day Trading: 12 Stock Picks

Matej Kastelic/Shutterstock.com

Our Methodology

To identify the best stocks for day trading, we began by screening U.S.-listed companies with a beta greater than 2.0 and an average daily trading volume exceeding 2 million shares. From this pool, we focused on stocks exhibiting consistent volatility, defined as an average daily trading range exceeding 5%. Finally, using Q2 2025 data from Insider Monkey’s database, we selected the top 12 stocks most widely held by hedge funds. The final ranking is based on the number of hedge funds with positions in each stock.

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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Note: All pricing data is as of market close on September 8, 2025.

Best Stocks for Day Trading: 12 Stock Picks

12. Aurora Innovation Inc. (NASDAQ:AUR)

Beta: 2.5

Average Volume: 22.3 Million

Number of Hedge Fund Holders: 41

Aurora Innovation Inc. (NASDAQ:AUR) is one of the best stocks for day trading. The company’s stock currently trades near the bottom of its 52-week range, between $4.20 and $10.80. With a beta of 2.5 and daily volatility, measured by the average high/low range, of 5.2%, the stock presents meaningful intraday trading opportunities.

On the fundamental side, on September 3, Canaccord Genuity’s George Gianarikas reiterated a Buy rating on the company with a $15 price target. The rating is a continuation of the analyst’s bullish view and comes after the insights shared by the company at Canaccord’s 45th Annual Growth Conference on August 13.

At the event, Aurora Innovation Inc. (NASDAQ:AUR) outlined its strategy for leadership in autonomous trucking, emphasizing operational progress, financial stability, and partnerships with industry leaders. Aurora is already running driverless trucks on public roads and has logged more than 20,000 miles since April.

Its partner ecosystem, which includes Uber Freight, Hirschbach, Volvo, FedEx, Warner, and Schneider, is central to Aurora’s plan to launch a driver-as-a-service model by 2027, with pricing targeted at 65–85 cents per mile. A second-generation hardware platform, engineered for a million-mile usage, is expected in early 2026.

The company ended Q2 with $1.3 billion in cash, providing a runway into mid-2027, while Continental is investing more than $300 million in engineering to support development. With expansion into the Sunbelt region planned for 2026 and a growing fleet underpinned by Volvo’s truck platform, Aurora Innovation Inc. (NASDAQ:AUR) is positioning itself to scale operations meaningfully.

Aurora Innovation Inc. (NASDAQ:AUR) is a self-driving technology company specializing in autonomous freight and logistics. Its flagship platform, the Aurora Driver, powers driverless trucks already operating on public roads.

11. Bloom Energy Corp. (NYSE:BE)

Beta: 3.4

Average Volume: 9.3 Million

Number of Hedge Fund Holders: 43

Bloom Energy Corp. (NYSE:BE) is one of the best stocks for day trading. With a relatively high beta of 3.4 and an average daily trading range of approximately 7%, the stock is likely to be a favorite among day traders seeking to capitalize on volatility.

The stock has already delivered exceptional gains, climbing 450% over the past year and more than 140% year-to-date.

On the fundamental side, the company appears to be performing well, given its exposure to the secular growth drivers of clean energy. On September 4, Baird analyst Ben Kallo raised his price target on the stock to $61 from $45, while maintaining an Outperform rating. The revision followed a tour of the company’s manufacturing facility, which reinforced his confidence in Bloom Energy Corp.’s (NYSE:BE) production capabilities and growth trajectory.

This came after Baird’s earlier move on August 1, when Kallo had already lifted his target to $45 from $22 following Q2 earnings. That same day, BTIG’s Gregory Lewis reiterated a Buy rating with a $42 target, citing results that exceeded expectations on strong product sales.

Lewis had also pointed to Bloom Energy Corp.’s (NYSE:BE) plans to double U.S. manufacturing capacity by 2026, alongside supportive legislation offering tax credit incentives. He also argued that the company’s recent exchange of convertible notes reduced near-term financing pressure, while partnerships with utilities such as American Electric Power highlight expanding commercial opportunities.

Bloom Energy Corp. (NYSE:BE) is a clean energy company that specializes in solid oxide fuel cell technology. Its Bloom Energy Servers provide highly efficient, low-carbon power generation for commercial and industrial customers.

10. Dutch Bros Inc. (NYSE:BROS)

Beta: 2.7

Average Volume: 3.2 Million

Number of Hedge Fund Holders: 44

Dutch Bros Inc. (NYSE:BROS) is one of the best stocks for day trading. Dutch Bros also presents substantial day trading opportunities, with a beta above 2.5, an average daily trading range of approximately 5.1%, and a current share price positioned in the middle of its 52-week range, between $30.50 and $86.90.

On August 28, UBS analyst Dennis Geiger raised his price target on Dutch Bros (NYSE:BROS) to $85 from $80, while maintaining a Buy rating. The analyst cited continued sales and traffic momentum alongside the company’s industry-leading store expansion as key drivers of growth.

Geiger expects these trends to hold through 2026, supported by a strong pipeline of new store openings and favorable company-specific catalysts. With traffic trends remaining resilient and expansion opportunities intact, the analyst sees further upside potential in Dutch Bros (NYSE:BROS) shares.

Dutch Bros Inc. (NYSE:BROS) operates and franchises drive-thru coffee shops focused on high-quality, handcrafted beverages. As of June 30, 2025, the company operated 1,043 locations across 19 states.

9. Victoria’s Secret & Co. (NYSE:VSCO)

Beta: 2.3

Average Volume: 3.4 Million

Number of Hedge Fund Holders: 44

Victoria’s Secret & Co. (NYSE:VSCO) is one of the best stocks for day trading. On August 28, Morgan Stanley’s Alexandra Straton reiterated a Hold rating on Victoria’s Secret (NYSE:VSCO) with a $20 price target.

The analyst acknowledged progress in the company’s turnaround, noting that Q2 results topped expectations for EPS, sales, and gross margin. She believes that stronger store traffic, improved full-price selling, and fewer promotions suggest that recent strategic initiatives are beginning to gain traction.

Even so, Straton remains cautious. EBIT margins remain below historical averages, and management’s Q3 guidance was softer than expected, indicating challenges from tariff pressures, increased marketing expenses, and rising labor costs.

With macro uncertainty lingering and the turnaround still in its early stages, the analyst sees limited visibility on earnings growth sustainability, which supports the decision to remain on Hold.

Victoria’s Secret & Co. (NYSE:VSCO) is a specialty retailer of women’s intimate and other apparel and beauty products marketed under the Victoria’s Secret, PINK, and Adore Me brand names.

8. Rocket Lab Corp. (NASDAQ:RKLB)

Beta: 2.2

Average Volume: 23.5 Million

Number of Hedge Fund Holders: 46

Rocket Lab Corp. (NASDAQ:RKLB) is one of the best stocks for day trading. The stock currently trades near the top of its 52-week range of $6.20-$53.40, and is another name on our list with high volatility, with an average daily trading range of around 9%.

Rocket Lab Corp.’s (NASDAQ:RKLB) stock has already delivered exceptional gains, climbing 675% over the past year and more than 87% year-to-date.

On September 3, Needham’s Ryan Koontz reiterated a Buy rating on Rocket Lab Corp. (NASDAQ:RKLB) with a $55 price target. The analyst highlighted the opening of Launch Complex 3 at Wallops Island, Virginia, as an important milestone that paves the way for the company’s Neutron rocket program.

Koontz said the new facility gives Rocket Lab Corp. (NASDAQ:RKLB) a stronger footing against rivals like SpaceX, with management aiming to launch Neutron by late 2025. Company leaders, employees, and local officials have all expressed confidence in meeting that target. The analyst believes that, backed by a solid track record in launch services, Rocket Lab Corp. (NASDAQ:RKLB) appears well placed to capture additional market share as it expands into the medium-lift segment.

Rocket Lab Corp. (NASDAQ:RKLB) is an end-to-end space company that provides launch services, spacecraft design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions.

7. Wayfair Inc. (NYSE:W)

Beta: 3.0

Average Volume: 4.7 Million

Number of Hedge Fund Holders: 46

Wayfair Inc. (NYSE:W) is one of the best stocks for day trading. The company’s stock has climbed nearly 100% over the past year and year-to-date.

On August 24, Morgan Stanley’s Simeon Gutman reiterated a Buy rating on Wayfair (NYSE:W) with a $105 price target. The analyst acknowledged risks tied to the Commerce Department’s investigation into timber and furniture imports, which could result in higher tariffs.

Gutman noted that the ultimate outcome depends on how the duties are classified, with uncertainty around whether tariffs will “stack” or apply differently across categories.

Despite this, he argued that Wayfair Inc.’s (NYSE:W) market position, scale, and ongoing strategic initiatives provide resilience in the face of these headwinds. In his view, the company has the adaptability to navigate potential cost pressures, supporting a constructive stance on the stock.

Wayfair Inc. (NYSE:W) is a leading online home goods retailer that offers furniture, décor, and household products through its e-commerce platforms.

6. Lyft Inc. (NASDAQ:LYFT)

Beta: 2.4

Average Volume: 17.4 Million

Number of Hedge Fund Holders: 51

Lyft Inc. (NASDAQ:LYFT) is one of the best stocks for day trading. On September 9, an analyst from Bernstein reiterated a Market Perform rating on Lyft (NASDAQ:LYFT) with a $16 price target, pointing to pending legislation in California as a key catalyst.

Lawmakers are considering AB 1340, which would allow drivers to negotiate terms as a union while maintaining their independent contractor status, and SB 371, which would lower the required uninsured motorist coverage.

The analyst estimated the insurance changes could reduce costs by nearly 30% of the projected 2026 EBITDA, though much of that benefit may be reinvested through lower fares and higher driver earnings. He sees potential for roughly 6% trip growth in California, adding about 80 basis points to consolidated volumes, though higher labor costs could offset some gains beyond 2027.

A few days earlier, on September 5, Wells Fargo’s Ken Gawrelski raised his price target on Lyft Inc. (NASDAQ:LYFT) to $16 from $15 while maintaining an Equal Weight stance. His revisions factored in a stronger advertising outlook, which he expects will provide incremental support to Lyft’s long-term profitability. Together, the two updates highlight both regulatory and business levers that could shape Lyft Inc.’s (NASDAQ:LYFT) financial trajectory in the coming years.

Lyft Inc. (NASDAQ:LYFT) is a U.S.-based ridesharing company that connects passengers with drivers through its mobile platform.

5. Peloton Interactive Inc. (NASDAQ:PTON)

Beta: 2.3

Average Volume: 13.0 Million

Number of Hedge Fund Holders: 53

Peloton Interactive Inc. (NASDAQ:PTON) is one of the best stocks for day trading. The company, which was once thought to be on the brink of bankruptcy, has made some progress but still faces cost headwinds, weaker top-line growth, and a long road to recovery. Its shares are down 7% year-to-date, and the stock remains volatile.

Peloton’s CEO Peter Stern, still within his first year in the role, is working to reposition the company as an AI-driven health and wellness platform. On September 3, at Citi’s 2025 Global Technology, Media, and Telecommunications Conference, Peloton (NASDAQ:PTON) presented a three-phase turnaround plan focused on rebuilding profitability and returning to sustainable growth.

Management highlighted progress on cost alignment and debt reduction, with free cash flow improving substantially year-over-year to $324 million in fiscal 2025 (FY ends in June). Peloton Interactive Inc. (NASDAQ:PTON) now targets at least $200 million in free cash flow for fiscal 2026.

Leadership changes and expansion into broader wellness categories, such as strength, mental health, sleep, and nutrition, are positioned as key drivers of growth.

These strategic updates follow Bloomberg’s August 14 report, which highlighted that Peloton Interactive Inc. (NASDAQ:PTON) is preparing its most significant hardware and software refresh in years. The company is planning to bring new versions of its bike and treadmill, additional branded accessories, and an AI-based personalization platform, as soon as October. The company also plans changes to distribution, including expanded refurbished sales and self-assembly options.

Peloton Interactive Inc. (NASDAQ:PTON) provides fitness and wellness products and services in North America and internationally. The company offers connected fitness products such as stationary bikes, treadmills, and programs focused on strength, recovery, sleep, and nutrition.

4. QXO Inc. (NYSE:QXO)

Beta: 2.3

Average Volume: 9.2 Million

Number of Hedge Fund Holders: 65

QXO Inc. (NYSE:QXO) is one of the best stocks for day trading. On September 5, Raymond James analyst Sam Darkatsh initiated coverage on QXO Inc. (NYSE:QXO) with an Outperform rating and a $28 price target. The analyst pointed to the company’s recent acquisition of Beacon Roofing as a pivotal step in establishing a scalable platform in building products distribution.

Darkatsh sees QXO Inc.’s (NYSE:QXO) ambition to reach $50 billion in revenue as a long-term growth opportunity and describes the current risk-reward setup as attractive. He said that lacklustre investor sentiment is an overhang over share prices currently.

At the same time, he cautioned that execution remains critical for the company, with integration and operational delivery likely to determine whether the company’s strategy can gain investor confidence.

QXO Inc. (NYSE:QXO) is a distributor of roofing, waterproofing, and complementary building products in the United States.

3. Affirm Holdings Inc. (NASDAQ:AFRM)

Beta: 3.7

Average Volume: 6.9 Million

Number of Hedge Fund Holders: 70

Affirm Holdings Inc. (NASDAQ:AFRM) is one of the best stocks for day trading. On September 3, Evercore ISI analyst Adam Frisch reiterated a Buy rating on the stock, with an unchanged price target of $100, implying an upside of nearly 15%. In a more recent update, on September 8, Andrew Jeffrey from William Blair also maintained his Buy rating on the stock without assigning a price target.

A day later, on September 9, Affirm Holdings Inc. (NASDAQ:AFRM) presented at Goldman Sachs’ Communicopia + Technology Conference, where CEO Max Levchin outlined the company’s growth roadmap. He highlighted that the company is reporting profitable growth with over 30% revenue growth, driven by more than 23 million active U.S. users and 50 million Americans underwritten.

Affirm Holdings Inc. (NASDAQ:AFRM) also noted that Merchant-funded 0% installment offers surged 90% last quarter. At the same time, the Affirm Card continued to gain traction, supported by partnerships like FIS that integrate its technology into existing debit cards.

The company is pushing growth by strengthening its U.S. e-commerce presence, building scale in the U.K., and entering new markets. Management also highlighted a strong lending record, with repayment rates near 98%, and sees potential in new technologies such as AI-driven shopping and automated commerce.

Affirm Holdings Inc. (NASDAQ:AFRM) is a financial technology company specializing in Buy Now, Pay Later (BNPL) services. Its platform partners with merchants to provide consumer-friendly installment options, including 0% interest offers.

2. Robinhood Markets Inc. (NASDAQ:HOOD)

Beta: 2.4

Average Volume: 45.1 Million

Number of Hedge Fund Holders: 85

Robinhood Markets Inc. (NASDAQ:HOOD) is the best performer on our list of the best stocks for day trading. The stock has delivered exceptional gains, climbing 500% over the past year and more than 215% year-to-date.

On September 10, Mizuho’s Dan Dolev reiterated a Buy rating on Robinhood Markets Inc. (NASDAQ:HOOD) and raised his price target to $145 from $120.

The analyst stated that he has gained confidence in the company’s offerings after it showcased new features at its HOOD Summit 2025 in Las Vegas, which he believes will drive user growth and deeper engagement.

Dolev highlighted Robinhood Social as a standout addition, enabling investors to follow trades live with real-time verification, discuss various strategies, and even track portfolios of notable investors, including hedge funds and politicians.

He also mentioned improvements to the Legend trading platform, such as overnight index options and short selling, which add useful features for active traders. In addition, the rollout of Robinhood Cortex, an AI tool, is expected to boost overall user activity on the platform.

In light of the growth potential of these initiatives, Dolev raised his valuation multiple from 21 times P/E to 23 times, viewing Robinhood Markets Inc. (NASDAQ:HOOD) as well-positioned to expand within its $20 billion addressable market.

Robinhood Markets Inc. (NASDAQ:HOOD) is a financial services platform offering commission-free trading of stocks, options, ETFs, and cryptocurrencies.

1. Applovin Corp. (NASDAQ:APP)

Beta: 2.4

Average Volume: 5.8 Million

Number of Hedge Fund Holders: 109

Applovin Corp. (NASDAQ:APP) is at the top of our list of the best stocks for day trading. The stock currently trades near the top of its 52-week range of $87.10-$574.00, having delivered 69% returns this year and over 530% returns in the last year.

On September 5, Citi’s Jason Bazinet reiterated a Buy rating on AppLovin Corp. (NASDAQ:APP) with a $600 price target. He pointed out that the company’s actual market presence is stronger than reported figures suggest, as traditional metrics don’t fully account for third-party spending or the global reach of its ad platform.

Bazinet also noted AppLovin’s ability to generate quick e-commerce conversions, with many purchases occurring shortly after ad exposure , a feature that sets it apart in digital advertising. The company is extending its reach beyond gaming into broader e-commerce categories, opening new avenues for growth.

Management emphasized that mobile ad revenue can grow alongside in-app purchases, rather than replacing them, giving the business a bigger runway where multiple revenue streams can advance together.

AppLovin Corporation (NASDAQ:APP) is a technology company that provides software and tools for mobile app developers to grow and monetize their businesses.

While we acknowledge the potential of APP as an investment, 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 APP and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.