This article will look into the 10 best short-term stocks with a buying opportunity for investors.
Thrilling highs, daunting lows, and the energized chase after the next big opportunity – this thoroughly defines the current stock market. In this roller coaster ride, momentum investing is an often-seen strategy piquing the investors’ interest, which involves capitalizing on continuing existing market trends. The approach holds onto the hope that high performers in the past will continue to perform better in the future as well. A curious subset within the strategy is the price momentum stocks, whose recent downturns are seen as an opportunity as they show potential for a swift rebound.
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2025 has started with many changes, leading to complications in the U.S. stock market. The political changes, including the change in the U.S.’s stand in the Ukraine-Russia war, tariff changes leaning towards unfavorable imports, and the advent of artificial intelligence (AI) models from foreign countries, have brought down the stock value of many dominating leaders in the industry. For instance, CNBC reported a $750 billion drop in the tech industry’s Magnificent 7’s value as of March 10, 2025, owing to new tariffs. However, this decline has been attributed more to institutional selling than fundamental weaknesses. Discerning investors perceive it as a potential opportunity.
It is not just the tech giants feeling the heat. Price momentum stocks with negative one-year returns in the broader market continue to attract investors’ interest despite the fluctuations in the market. Despite the decline over the past year, these stocks have shown positive momentum in more recent periods, getting the attention of many analysts in the market. Such patterns are common in companies that underwent a restructuring, launched a promising product, or benefited from favorable market conditions. To identify these stocks, we must be willing to go deeper beyond the surface-level metrics, and hence, we present this article to you.
Before going into the article, however, investors are asked to approach the momentum investing strategy with caution. The strategy, particularly concerning stocks with recent negative returns, can be like walking a tightrope. We must consider the possibility of the factors that led to their decline, resurfacing in the future, or the short life of the recent positive momentum. Hence, in addition to the information we share in our article, thorough research alongside a well-defined exit strategy is highly recommended.
The pursuit of high returns can be tempting. Hence, investors are suggested to estimate the risk tolerance levels and long-term objectives and align them with their investment decisions. Even during tough times, the stock market presents investors with many opportunities. Discernment and prudence are required to make informed investment decisions that provide the best chance of generating an optimal return for your investment. With this in mind, let’s unveil our list.
Please stick with us as we count down our list of the 10 best short-term stocks from 10 to 1. The top 5 may challenge your investment decisions.
A person holding a cup of coffee while reading stock market data on the phone. Photo by Anna Nekrashevich on Pexels
Our Methodology
We have used three key criteria to identify the 10 best short-term momentum stocks: a minimum decline of 30% over the past year, a minimum gain of 7.5% in the past month, and average daily trading volume of at least 100,000 shares. In addition, we have considered technical indicators focusing on stocks that recently crossed above their 20-day Simple Moving Average (SMA) and where the 20-day SMA exceeds the 200-day SMA, which signals a potential upward trend. To rank the list, we used the one-month returns. With it, we prioritized the most recent momentum performers. We have also considered the hedge fund interest from Insider Monkey’s Q4 2024 database for each stock on our list to project the level of market backing.
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).
10. Dream Finders Homes, Inc. (NYSE:DFH)
Last 52 weeks return: -35.73%
Last 1 month’s return: 7.69%
No. of hedge fund portfolios: 13
Dream Finders Homes, Inc. (NYSE:DFH) is a national homebuilder specializing in customizable, high-quality residential properties headquartered in Jacksonville, Florida. The company operates across multiple U.S. markets, catering to first-time and move-up homebuyers with competitively priced homes. Dream Finders Homes, unlike mass-production builders, adopts a low-overhead, asset-light business model and concentrates on personalized homes.
Dream Finders Homes, Inc. (NYSE:DFH) has seen its stock price decline by 35.73% over the past year. In addition to the challenges in the housing market, the decline was due to a fall in the company’s gross margin and net income. Particularly during the third quarter, the financial items decreased 19.2% and 7%, respectively, despite a 10% rise in revenue, suggesting challenges in handling costs and expenses.
However, the last month has shown a modest rebound of 7.69%, suggesting renewed investor interest. The fourth quarter and full year 2024 results indicated that homebuilding revenues went up 35% to $1.5 billion and the net income up by 27% to $129 million, suggesting improved performance by Dream Finders Homes, Inc. (NYSE:DFH). The financial growth, amid market chaos, translated positively among the investors, resulting in the recent rise. The 20-day SMA has increased by 2.62%, indicating short-term optimism, crossing the 200-day SMA, which remains negative at 14.62%.
Despite the downturn, 13 hedge fund portfolios from the Insider Monkey database continue to hold positions in DFH at the end of Q4 2024, suggesting institutional confidence and a potential upside for short-term investors.
9. Brown-Forman Corporation (NYSE:BF-B)
Last 52 weeks return: -34.74%
Last 1 month’s return: 11.69%
No. of hedge fund portfolios: 38
Brown-Forman Corporation (NYSE:BF-B) is a U.S.-based spirits and wine company. The company focuses on producing, marketing, and selling various alcoholic beverage brands, including Jack Daniel’s, Woodford Reserve, and Old Forester. Their product portfolio includes whiskey, tequila, rum, gin, liqueur, wine, and ready-to-drink beverages. With corporate offices and production facilities across six continents, the company’s business operations reach over 170 countries.
Brown-Forman Corporation (NYSE:BF-B) experiences a decline of 34.74% in its yearly growth. The U.S. spirits market has seen a declining trend throughout 2024, making it challenging for brands like Tequila, Jimador, and Herradura to thrive in the U.S. and Mexico. The absence of the gain in the Finlandia vodka business sales further contributed to the decline.
However, in the past 1 month, as of March 14, 2025, Brown-Forman Corporation (NYSE:BF-B) saw an 11.69% increase in its value. The positive effect comes after the company’s announcement to engage in strategic initiatives, such as the sale of their mills and Cooperage in Alabama, to support the optimization of the wood supply chain, which is expected to deliver between $70 million and $80 million in annualized savings. SMA for 200 days experiences a decline of 16.61%. However, SMA for the last 20 days indicates a positive trend of 3.32%.
Institutional interest in Brown-Forman Corporation (NYSE:BF-B) remains high, with 38 hedge funds holding on to the stocks at the end of Q4 2024, suggesting the inclusion of the company in the 10 best short-term stocks.
8. Cassava Sciences, Inc. (NASDAQ:SAVA)
Last 52 weeks return: -86.52%
Last 1 month’s return: 15.29%
No. of hedge fund portfolios: 10
Cassava Sciences, Inc. (NASDAQ:SAVA) is a Texas-based company engaged in clinical-stage biotechnology business and working on novel treatments for Alzheimer’s disease. Similarly, the company’s leading drug candidate is designed to restore protein function and reduce neuroinflammation. The company sets itself apart from its competitors by focusing on disease-modifying therapies rather than symptomatic relief. It has a global reach for its clinical trials and research.
Cassava Sciences, Inc. (NASDAQ:SAVA) has faced significant losses, plunging 86.52% over the past year, mainly reflecting challenges within the biotech sector. The company has been testing a new drug for the treatment of Alzheimer’s. The drug had passed the phase 1 trials and hence received huge expectations. However, during the latter part of 2024, the company’s Alzheimer’s treatment failed in Phase 3 testing, leading the stocks to plummet.
Despite the loss over the past year, recent trends show a 15.29% gain in the last month. The gain suggests some recovery potential, which was initiated by a license agreement concerning a new therapeutic application for Simufilam. Rick Barry, President and Chief Executive Officer at Cassava, has made the following statement in this regard.
“We are pleased to have entered a licensing agreement with Yale University, which allows us to build on the promising research of Angélique Bordey, PhD, Professor of Neurosurgery and Vice Chair of Research, Neurosurgery at Yale, to explore Simufilam’s potential as a treatment for TSC-related seizures”
While the 200-day SMA remains profoundly negative at -82.45%, the 20-day SMA has increased by 6.96%.
With 10 hedge fund portfolios from the Insider Monkey database still invested, some institutional confidence persists, making Cassava Sciences a risky yet high-rewarding stock for short-term traders.
7. Puma Biotechnology, Inc. (NASDAQ:PBYI)
Last 52 weeks return: -36.40%
Last 1 month’s return: 16.08%
No. of hedge fund portfolios: 18
The U.S.-based pharmaceutical company, Puma Biotechnology, Inc. (NASDAQ:PBYI) is focused on developing and commercializing innovative cancer treatments. Its lead product, Nerlynx, is used for HER2-positive breast cancer patients to prevent recurrence. The company distinguishes itself from its competitors through targeted oncology therapies.
Puma Biotechnology, Inc. (NASDAQ:PBYI) has seen a 36.40% decline in value over the past 52 weeks owing to various reasons. Significant among them is Nerlynx’s declining sales. The company was also facing challenges in expanding the dose range for alisertib without needing further FDA consultations. It all reflected negatively on the company’s values.
However, recent trading activity indicates some positivity, with the stock having climbed 16.08% in the last month. This was after a 9% increase in NERLYNX ex-factory bottle sales during Puma Biotechnology, Inc. (NASDAQ:PBYI)’s fourth quarter. Additionally, the company conducted clinical trials, including a Phase I trial with Enhertu and two Phase II trials for alisertib – a novel aurora A kinase inhibitor under investigation for the treatment of various forms of cancer, with data expected in 2025.
With 18 hedge fund portfolios from the Insider Monkey database currently holding positions, Puma Biotechnology, Inc. (NASDAQ:PBYI) is gaining attention as a possible near-term investment opportunity among short-term stocks.
6. Stoneridge, Inc. (NYSE:SRI)
Last 52 weeks return: -70%
Last 1 month’s return: 17.33%
No. of hedge fund portfolios: 23
Stoneridge, Inc. (NYSE:SRI), based in Novi, Michigan, is a global manufacturer of advanced electrical and electronic components for automotive markets. The company develops cutting-edge systems such as digital instrument clusters and telematics solutions. It places importance on smart mobility innovations, thus competing with market giants like Bosch and Continental. The company specializes in increasing vehicle performance through intelligent safety and connectivity solutions.
Stoneridge, Inc. (NYSE:SRI) has been under pressure, shedding 70% of its value in the last 52 weeks. The decline was the result of a decrease in revenue caused by a fall in sales in all the South American end markets because of continued macroeconomic challenges. Additionally, the investors noted that the unfavorable translation of foreign currency was heavily affecting the company’s returns, causing its value to plummet.
However, a 17.33% jump over the past month points to a positive shift in sentiment. MirrorEye and the Smart 2 tachograph, the two specific growth drivers of the company during the year, have helped offset a portion of the market headwinds to drive market outperformance. Jim Zizelman, president and chief executive officer, made the following comment concerning their future endeavor.
“We are focused on overall cost structure, as evidenced by our recent actions to delay certain corporate functions and streamline our operations in manufacturing facilities, reducing costs and improving operational efficiency.”
The statement reflects Stoneridge, Inc. (NYSE:SRI)’s commitment to reducing costs, thereby increasing its performance against market headwinds. The 20-day SMA has increased slightly by 2.18%, while the 200-day SMA remains deep in negative territory at -50.32%.
The company’s stocks are backed by 23 hedge fund portfolios from Insider Monkey’s Q4 2024 database, suggesting institutional interest that may support its recent upward momentum and entry into our best short-term stocks.
5. B&G Foods, Inc. (NYSE:BGS)
Last 52 weeks return: -34.44%
Last 1 month’s return: 20.90%
No. of hedge fund portfolios: 19
B&G Foods, Inc. (NYSE:BGS) is a leading food company engaged in the manufacturing, selling, and distribution of branded shelf-stable and frozen foods. This includes various products like canned goods, spices, sauces, and cereals. The company runs its business operations from its headquarters located in New Jersey, United States. It serves many regions across the globe, including Canada and Puerto Rico.
B&G Foods, Inc. (NYSE:BGS) saw a decline of 34.44% in its value during the last 52 weeks ending March 14, 2025. The negative growth resulted from declining sales caused by the company’s divestiture of its Green Giant U.S. shelf-stable product line in late 2023. Additionally, the company noted recorded impairments across a group of four brands, including Green Giant, Victoria, Static Guard, and McCann’s.
However, last month’s return for the company saw an upward trend, reaching 20.90%. A 5% increase followed the trend in the net sales of the spices and flavor solutions business unit, which contributed to B&G Foods, Inc. (NYSE:BGS)’s fourth quarter overall net sales of $551.6 million, meeting the analysts’ expectations. Debt was also reduced from $2.05 billion to $1.994 billion at the end of the fourth quarter of 2024. The company’s SMA further sees a short-term upward trend of 6.11% (20-days) against a longer-term downward trend.
With 19 hedge funds from the Insider Monkey database backing the stock at the end of Q4 2024, a strong institutional interest can be recognized, signaling the need for the stock’s entry into the 10 best short-term stocks to be bought.
4. Celsius Holdings, Inc. (NASDAQ:CELH)
Last 52 weeks return: -71.03%
Last 1 month’s return: 21.22%
No. of hedge fund portfolios: 33
Celsius Holdings, Inc. (NASDAQ:CELH) is a global company specializing in fitness beverages to boost energy levels. Its flagship product, Celsius, contains natural ingredients, appealing to health-conscious consumers. The company’s headquarters are located in Florida, the U.S. Competing with brands like Monster and Red Bull, the company leverages brand loyalty, strategic partnerships, and distribution expansion to acquire sustained growth.
Celsius Holdings, Inc. (NASDAQ:CELH) has experienced a steep decline of 71.03% over the past 52 weeks. The decline reflects the challenges faced by the company, including reduced unit velocity and softer macroeconomic conditions, which are affecting the revenue. Notably, there was a 6% drop in sales in North America after PepsiCo, the largest distributor for the company, reduced its inventory.
However, Celsius Holdings, Inc. (NASDAQ:CELH) has shown signs of recovery in the last month, surging 21.22%. In its fourth quarter, the company announced an acquisition of Alani Nutrition, which could enhance its position in the sugar-free beverage market. The announcement has a broad positive reception, adding value to its shares. Short-term indicators also highlight a mild upward momentum, with the 20-day SMA rising by 1.64%, though the 200-day SMA stays negative at 26.74%.
With 33 hedge fund portfolios tracking the stock as per Insider Monkey’s database of Q4 2024, institutional interest remains significant, placing Celsius Holdings among the top short-term stocks for investors.
3. Regulus Therapeutics Inc. (NASDAQ:RGLS)
Last 52 weeks return: -39.34%
Last 1 month’s return: 22.31%
No. of hedge fund portfolios: 13
Regulus Therapeutics Inc. (NASDAQ:RGLS) is a biopharmaceutical company specializing in microRNA-based therapies for kidney and liver diseases. The company operates from its headquarters located in California, United States. Its drug pipeline targets conditions such as chronic kidney disease and rare genetic disorders. Differentiation in the market is achieved through a proprietary focus on RNA-targeted therapeutics.
Regulus Therapeutics Inc. (NASDAQ:RGLS) has struggled over the past year, as evidenced by a 39.34% decline. The drop came even after receiving positive results from a Phase 1b interim analysis on ADPKD patients. Emphasis was laid on the phase 3 trial since phase 1 does not establish the drug’s effectiveness and safety.
However, the recent performance suggests a potential turnaround, as the stock gained 22.31% over the last month. Phase 3 trial began in the previous quarter and is anticipated to enroll 336 adults. The trial attracts potential investors interested in the biopharmaceutical market, and hence, it has received appreciation for the value of its stocks in recent times. The 20-day SMA grew by 11.61%, against the 200-day SMA of -7.35%.
With 13 hedge funds holding positions in Q4 2024, investor confidence is growing, pointing out Regulus as a compelling addition to the best short-term stock investment watchlist.
2. Acelyrin, Inc. (NASDAQ:SLRN)
Last 52 weeks return: -65.06%
Last 1 month’s return: 29.11%
No. of hedge fund portfolios: 28
Acelyrin, Inc. (NASDAQ:SLRN) is a biotechnology firm headquartered in California, the U.S., and engaged in developing immunology-focused therapies for treating chronic inflammatory diseases. The company’s pipeline includes treatments targeting autoimmune conditions such as hidradenitis suppurativa and inflammatory arthritis. Specifically, the company focuses on advancing biologics with novel mechanisms of action, thus acquiring a position in next-generation immunotherapy.
Acelyrin, Inc. (NASDAQ:SLRN) has endured a 65.06% decline over the last 52 weeks. In late 2023, the company raised $540 million in a rare biotech IPO. It reported the failure of this lead prospect in a phase 2b/3 inflammatory disease clinical trial. The result was a sharp decline in the company’s share price during the initial quarters of 2024. Later, the company reported positive Phase II data for its monoclonal antibody lonigutamab in thyroid eye disease (TED), but it failed to meet the investors’ expectations.
The recent momentum, however, has been encouraging. Acelyrin, Inc. (NASDAQ:SLRN) has gained 29.11% in the past month. The rise comes after receiving an unsolicited indication of interest from Concentra Biosciences. Concentra offered $3 per share plus Contingent Value Right (CVR). However, Acelyrin’s board of directors determined to turn it down, claiming that this offer was not reasonably expected to result in a superior proposal compared to the planned merger with Alumis. The reaffirmation, as reflected by the rise in stock price, contributed to investor optimism. The 20-day SMA increases by 8.47% while the 200-day SMA is at -35.33%.
Backed by 28 hedge fund portfolios from the Insider Monkey Q4 2024 database, Acelyrin, Inc. (NASDAQ:SLRN) has attracted significant institutional interest, making it a candidate for those seeking short-term stocks amid market fluctuations.
1. CervoMed Inc. (NASDAQ:CRVO)
Last 52 weeks return: -61.02%
Last 1 month’s return: 176.39%
No. of hedge fund portfolios: 3
CervoMed Inc. (NASDAQ:CRVO), headquartered in Massachusetts, the U.S., is a clinical-stage biotechnology company. Their focus lies on developing treatments for neurodegenerative diseases, including Alzheimer’s and Parkinson’s. The company differentiates itself through proprietary small molecule therapies and competes with companies like Plus Therapeutics, Inc. and Dogwood Therapeutics, Inc.
CervoMed Inc. (NASDAQ:CRVO) saw a decline of 61.02% over the past year. The stock began declining after the company released data regarding the RewinD-LB Phase 2b clinical trial evaluating neflamapimod for dementia. The company was expecting the drug to be a grand success. The prosecution did not meet statistical significance thresholds for its primary endpoint of change, thus negatively reflecting the company’s values.
CervoMed Inc. (NASDAQ:CRVO) recently demonstrated extraordinary short-term growth, skyrocketing 176.39% in just one month. The rise was due to the positive results announced by the company from the extension phase of its Phase 2b clinical study of Neflamapimod in patients with dementia with Lewy bodies. The 20-day SMA reflects a substantial upward trend at 128.90%, standing against the 200-day SMA of -40.85%.
While CervoMed Inc. (NASDAQ:CRVO) has limited hedge fund backing and only three hedge fund investors, the recent surge in price indicates a strong momentum that could attract investors looking for the best short-term stocks with some volatility.
Overall, CervoMed Inc. (NASDAQ:CRVO) ranks first on our 10 best short-term stocks list. While we acknowledge the potential for CRVO as an investment, our conviction lies in the belief that some AI stocks hold more significant promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRVO but trades at less than 5 times its earnings check out our report about the cheapest AI stock.
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