In this article, we discuss 10 most active stocks to buy now. If you want to see more stocks in this list, click 5 Most Active Stocks To Buy Now.
Morgan Stanley’s investment chief, Mike Wilson, said on May 11 that the current decline of the stock market has not yet bottomed. Rampant inflation and plunging corporate earnings will drive further downside for the stock market. Earnings are tampered by compressed margins and slowing top-line growth. Mike Wilson’s base case scenario for the economy involves the S&P 500 trading at 3,900 one year from now, reflecting a possible downside of 3% from present levels. In a bear case scenario, the benchmark index would trade 16% lower to 3,350.
The New York Times reported on May 9 that the S&P 500 has now posted five consistent weeks of declines, marking the index’s largest streak of losses since June 2011. Some Wall Street experts remain optimistic about the stock market, despite the sharp benchmark lows driven by the continuing Chinese lockdowns, raging inflation, soaring oil prices, and global supply tightness, as well as the war in Ukraine. Charles Schwab disclosed on May 6 that of the 436 S&P 500 constituents who posted Q1 results, 79% reported above consensus earnings per share and 67% announced revenue beats in the quarter.
Given the continuous interest of investors in the stock market despite uncertain macro conditions and ongoing volatility, it is prudent to seek out the most active stocks on Wall Street to see what the masses are pouring into. Some of the most notable active stocks to buy now include Coinbase Global, Inc. (NASDAQ:COIN), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL), among others discussed in detail below.
Photo by Austin Distel on Unsplash
Our Methodology
These stocks were picked keeping in mind the trading volume, picking the securities that had a volume of over 60 million as of May 11. The analyst ratings and business fundamentals of each stock are also discussed to provide readers with further context for their investment choices.
Data from 900+ elite hedge funds tracked by Insider Monkey in Q4 2021 was used to identify the number of hedge funds that hold stakes in each company.
Most Active Stocks To Buy Now
10. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 134
Volume as of May 11: 141 million
Apple Inc. (NASDAQ:AAPL) is perhaps one of the most actively traded stocks on the market, with a volume of 141 million as of May 11. Apple Inc. (NASDAQ:AAPL), the American tech giant, posted above consensus earnings for the first fiscal quarter of 2022, with an EPS of $1.52 and a revenue of $97.28 billion.
On May 3, Morgan Stanley analyst Katy Huberty reiterated an Overweight rating and a $195 price target on Apple Inc. (NASDAQ:AAPL) shares, stating that based on data from Sensor Tower, she estimates that App Store net revenue growth accelerated to 8% year-over-year in April from March quarter growth of 6% year-over-year. The analyst’s 15% year-over-year June quarter forecast for App Store growth remains unchanged.
According to Insider Monkey’s fourth quarter data, Apple Inc. (NASDAQ:AAPL) was found in the public stock portfolios of 134 hedge funds, compared to 120 funds in the earlier quarter. The total stakes in Q4 amounted to $186 billion, up from $146 billion in Q3. Warren Buffett’s Berkshire Hathaway is the leading shareholder of the company, with more than 887 million shares worth $157.5 billion.
Here is what Berkshire Hathaway has to say about Apple Inc. (NASDAQ:AAPL) in its Q4 2021 investor letter:
“Apple Inc. (NASDAQ:AAPL) – our runner-up Giant as measured by its year end market value – is a different sort of holding. Here, our ownership is a mere 5.55%, up from 5.39% a year earlier. That increase sounds like small potatoes. But consider that each 0.1% of Apple’s 2021 earnings amounted to $100 million. We spent no Berkshire funds to gain our accretion. Apple’s repurchases did the job. It’s important to understand that only dividends from Apple are counted in the GAAP earnings Berkshire reports – and last year, Apple paid us $785 million of those. Yet our “share” of Apple’s earnings amounted to a staggering $5.6 billion. Much of what the company retained was used to repurchase Apple shares, an act we applaud. Tim Cook, Apple’s brilliant CEO, quite properly regards users of Apple products as his first love, but all of his other constituencies benefit from Tim’s managerial touch as well.”
9. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 110
Volume as of May 11: 67 million
NVIDIA Corporation (NASDAQ:NVDA) was incorporated in 1993 and is headquartered in Santa Clara, California. NVIDIA Corporation (NASDAQ:NVDA) offers expertise in graphics, cloud computing, and networking solutions in the United States, Taiwan, China, and international markets. It is one of the most actively traded stocks, with a volume of 67 million as of May 11.
On May 3, Morgan Stanley analyst Joseph Moore resumed coverage of NVIDIA Corporation (NASDAQ:NVDA) with an Equal Weight rating and a $217 price target. The analyst said that while NVIDIA Corporation (NASDAQ:NVDA) remains one of the top growth names in the semiconductor sector, he is concerned about softness in gaming and the high valuation compared to peers. He has accounted for a “significant deceleration” in gaming that will lead to a “modestly challenging” 2023 for NVIDIA Corporation (NASDAQ:NVDA), offset by its “robust” data center exposure.
According to the fourth quarter database of Insider Monkey, NVIDIA Corporation (NASDAQ:NVDA) was found in the public investment portfolios of 110 hedge funds, compared to 83 funds in the last quarter. Ken Fisher’s Fisher Asset Management is a significant shareholder of the company, with more than 5 million shares worth $1.50 billion.
Here is what RiverPark Long/Short Opportunity Fund has to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2022 investor letter:
“Nvidia is the leading designer of graphics processing chips (commonly known as GPU’s- graphics processing units), required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming- focused chip vendor to one of the largest semiconductor/software vendors in the world, dominating the core secular growth markets of gaming, data centers and professional visualization. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. For 2021 the company generated 61% revenue growth to $27 billion, expanded its EBITDA margins to over 44% and generated over $8 billion of free cash flow. Over the past five years, the company has generated a cumulative $23 billion of FCF after cumulative capital expenditures of less than $4 billion.
We expect future growth to remain robust as NVDA chips and software are critical to many of the core technologies being adopted globally, including cloud computing, virtual reality and advanced artificial intelligence. As with NFLX, we took advantage of the over 40% recent drop in the company’s shares over the last several months to initiate a small position.”
8. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 61
Volume as of May 11: 105.1 million
Roblox Corporation (NYSE:RBLX) is a California-based online entertainment platform, offering its services via Roblox Studio, Roblox Client, Roblox Education, and Roblox Cloud segments. Roblox Corporation (NYSE:RBLX)’s trading volume on May 11 was 105.1 million.
Roblox Corporation (NYSE:RBLX) reported financial results for the first quarter of 2022 on May 10. The company posted a loss per share of $0.27, missing market estimates by $0.07. The $623.21 million revenue dropped 3.23% from the prior-year quarter, falling short of analysts’ predictions by $15.01 million.
On May 12, Needham analyst Bernie McTernan maintained a Buy rating on Roblox Corporation (NYSE:RBLX) but lowered the firm’s price target on the stock to $40 from $60 after the Q1 earnings miss. The analyst remains positive as the company is leveraging monetization opportunities on its platform, actively trying to convert engagement into bookings. The analyst also cited Roblox Corporation (NYSE:RBLX)’s advertising opportunity, which he expects will start contributing to revenue next year and grow to more than $1 billion by FY 2027.
According to Insider Monkey’s Q4 data, 61 hedge funds were long Roblox Corporation (NYSE:RBLX), up from 50 funds in the last quarter. The collective stakes owned in the fourth quarter exceeded $4 billion, compared to $3.5 billion in Q3. Jim Simons’ Renaissance Technologies is the largest position holder in the company, with 5.3 million shares worth $557 million.
Like Coinbase Global, Inc. (NASDAQ:COIN), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL), Roblox Corporation (NYSE:RBLX) is one of the most active stocks to buy now.
Here is what Tao Value has to say about Roblox Corporation (NYSE:RBLX) in its Q4 2021 investor letter:
“Roblox (RBLX) got significant more attention from both institutional & retail investors after Facebook announced to rename itself as Meta Platforms. I believe the price appreciation is largely attributed to the increased attention. On the business side, Roblox rolled out a few successful music events and also partnered with Netflix on testing long-form media consumption in the virtual world. Apple in its iOS 14.5 rolled out an impactful change for the digital advertising landscape by requiring all apps to ask users to “opt in”.
7. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 53
Volume as of May 11: 69.9 million
Ford Motor Company (NYSE:F) is a Michigan-based automotive firm that manufactures and sells a range of trucks, cars, sport utility vehicles, electric vehicles, and Lincoln luxury vehicles to customers worldwide. As of May 11, Ford Motor Company (NYSE:F) was one of the most active American stocks, with a trading volume of approximately 70 million.
On April 27, Ford Motor Company (NYSE:F) reported its Q1 2022 results, announcing earnings per share of $0.38, topping analysts’ predictions by $0.01. The $32.11 billion revenue also outperformed Street estimates by $457.31 million.
Wells Fargo analyst Colin Langan on May 11 downgraded Ford Motor Company (NYSE:F) to Underweight from Overweight, slashing the price target to $12 from $24. According to the analyst, battery electric vehicle costs have “massively risen” and raw material supply is constricted. However, strict American regulations possibly require more BEV sales. The analyst noted that Ford Motor Company (NYSE:F) has historically relied on F-Series for more than 60% of its profits, making possible substitution with the electric version a “material risk”. He also sees headwinds from price normalization, inflationary pressure, and the 2023 UAW contract negotiations.
Among the hedge funds tracked by Insider Monkey, 53 funds were bullish on Ford Motor Company (NYSE:F) at the end of December 2021, compared to 51 funds in the last quarter. D E Shaw is the biggest shareholder of the company, with 28.4 million shares worth $590 million.
In its Q1 2020 investor letter, Greenlight Capital Fund highlighted a few stocks and Ford Motor Company (NYSE:F) was one of them. Here is what the fund said:
“General Motors (GM) was a disappointment. The damage from last year’s strike consumed most of the cash flow GM would have otherwise generated in 2019. We had expected a strong bounce back in earnings and cash flow in 2020, but the annual guidance, while meeting Wall Street expectations, was worse than we expected. Further, the cash burned during the strike needed to be re-earned in order to protect GM’s investment grade rating. Pre-crisis, there would have been, at best, a minimal share repurchase late in the year. At the analyst day, our hopes that 2020 would finally be the year were dashed. We sold our stock. Over our five-year holding period, we made a 9.6% IRR on GM. In the difficult environment, its most comparable peer, Ford Motor Company (NYSE:F), lost about half its value.”
6. SoFi Technologies, Inc. (NASDAQ:SOFI)
Number of Hedge Fund Holders: 24
Volume as of May 11: 76.4 million
SoFi Technologies, Inc. (NASDAQ:SOFI) was founded in 2011 and is headquartered in San Francisco, California. The company offers digital financial services, operating through three segments – Lending, Technology Platform, and Financial Services.
On May 10, SoFi Technologies, Inc. (NASDAQ:SOFI) posted its Q1 2022 results, reporting a GAAP loss per share of $0.14, in line with analysts’ consensus estimates. The revenue of $321.73 million climbed 48.9% year-over-year, ahead of Street estimates by $37.74 million.
Credit Suisse analyst Timothy Chiodo on May 11 reiterated a Neutral rating on SoFi Technologies, Inc. (NASDAQ:SOFI) and lowered the firm’s price target on the stock to $9.50 from $15.50 following quarterly results. The analyst noted that SoFi Technologies, Inc. (NASDAQ:SOFI) came in ahead of its updated Q1 guidance, and reported a slightly increased full year 2022 revenue guide. While the analyst continues to see SoFi Technologies, Inc. (NASDAQ:SOFI) as comparatively well positioned among American Neobanks, he slightly lowered his estimates given the underlying trends during Q1.
According to Insider Monkey’s fourth quarter database, 24 hedge funds were bullish on SoFi Technologies, Inc. (NASDAQ:SOFI), with collective stakes worth $826.2 million, compared to 33 funds in the last quarter, holding stakes in the company valued at $852.8 million. Jim Davidson, Dave Roux, and Glenn Hutchins’ Silver Lake Partners is the leading shareholder of SoFi Technologies, Inc. (NASDAQ:SOFI), with 31.15 million shares worth $492.5 million.
In addition to Coinbase Global, Inc. (NASDAQ:COIN), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL), institutional investors are pouring into SoFi Technologies, Inc. (NASDAQ:SOFI).
Here is what Altron Capital Management has to say about SoFi Technologies, Inc. (NASDAQ:SOFI) in its Q4 2021 investor letter:
“We have been building our position in SoFi over the last two quarters but have not yet written about our thesis until now. SoFi is an online financial technology company that started off refinancing student loans. This segment remains a big part of the company’s business, but they have more recently expanded their products to offer an entire suite of financial services including personal banking, investing, and credit. While their collection of products is still evolving and not yet complete, we believe the company is in the early stages of its inflection. The company nearly doubled its member count over the past year and is growing 50%+ despite its loan refinancing business taking a hit due to the COVID-related loan moratorium. Furthermore, the company is close to obtaining a bank charter through its acquisition of Golden Pacific Bancorp, a community bank based in Sacramento. A bank charter would allow SoFi to take in its own customer deposits, lowering its cost of capital and expanding the company’s breadth of financial offerings.
While SoFi is not the only online banking platform out there, we believe it could take a decent share of the financial services market. Banking is a notoriously sticky business, as the inconvenience and hassle of switching banks prevent consumers from jumping to competitors regardless of cost. This is one of the reasons that traditional banks are one of the few businesses to have truly been disrupted by technology. We think SoFi is well on its way to changing that and creating a new paradigm for the future of consumer banking and financial services.
The factors that will ultimately drive consumer adoption of online banking are cost and convenience. In our opinion, SoFi is best positioned to drive consumers away from the legacy banking model. Their one-stop-shop approach for financial services and their lack of a brick-and-mortar branch network to maintain may eventually propel them into becoming one of the larger players in the banking industry in the United States…” (Click here to see the full text)
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Disclosure: None. 10 Most Active Stocks To Buy Now is originally published on Insider Monkey.
