In this article, we will discuss the 10 Most Active US Stocks to Buy According to Hedge Funds.
Over the past five years, the U.S. stock market has experienced growth in trading volume. According to data from the World Bank, the total value of stocks traded in the U.S. increased from approximately $36.3 trillion in 2019 to over $44.3 trillion in 2022. The upward trend reflects the U.S. stock market’s growth over the years. As of March 11, 2025, the total consolidated volume reached 19.3 billion shares, with major exchanges like NYSE and NASDAQ contributing significantly to this activity.
Correlation Between Trading Volume and Stock Returns
Empirical studies have explored the relationship between trading volume and stock returns. For example, research on the BRVM found a directly proportional relationship between stock returns and trading volume. This means that when a stock sees an increase in volume, it might also experience a corresponding change in its return profile. The practical takeaway is that active stocks often benefit from greater investor interest, which can, in turn, drive short-term price momentum.
While trading volume remains strong, the broader U.S. stock market is currently facing heightened volatility and economic uncertainty. The broader market index has dropped nearly 9% over the past month, reversing its gains from late 2024. This decline is largely driven by trade tensions and policy shifts, with new tariffs imposed on imports from China, Mexico, and Canada adding to investor concerns.
The uncertainty surrounding these trade policies has led to increased caution among investors and a shift in investment strategies. Major indices, including NYSE and NASDAQ, have shown instability, while the Magnificent Seven tech stocks have collectively fallen by 14% in the last three weeks. Financial institutions have adjusted their forecasts in light of these developments. Goldman Sachs, for instance, has reduced its year-end target for the broader market from 6,500 to 6,200, citing elevated policy uncertainty and tighter financial conditions.
While the market may face challenges, hedge funds continue to target stocks that remain highly active and resilient in volatile conditions. They often focus on highly active stocks due to their liquidity, volatility, and potential for short-term gains. Active stocks, characterized by high trading volume, provide hedge funds with the flexibility to enter and exit positions efficiently without significantly impacting prices. This makes them ideal for strategies such as momentum trading, arbitrage, and algorithmic trading. For instance, data from a leading electronic platform for the trading of bonds indicated that hedge funds’ share of trading volumes in the European government bond (EGB) secondary market surged from 26% in 2018 to 56% in 2023. This substantial increase underscores hedge funds’ preference for markets where high trading volumes allow for swift entry and exit positions. Given this, we will take a look at some of the most active stocks to buy.
Source: pexels
Our Methodology
To identify the 10 most active US stocks to buy according to hedge funds, we used the Finviz stock screener to filter stocks with an average trading volume above 2 million shares. These stocks were then sorted by volume to highlight the most actively traded ones. Next, we ranked them based on Q4 2024 hedge fund sentiment data from Insider Monkey, analyzing recent 13F filings to determine which stocks had the highest institutional interest. The stocks below are ranked according to the number of hedge fund holders.
At Insider Monkey, we are obsessed with 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Sharps Technology Inc. (NASDAQ:STSS)
No of hedge fund holders: 3
Sharps Technology Inc. (NASDAQ:STSS) is a medical device and pharmaceutical packaging company specializing in smart-safety syringe products.
In its recent corporate update, Sharps Technology Inc. (NASDAQ:STSS) has reinforced its strategic position following the successful completion of a $20 million capital raise. It eliminated debt and enhanced the company’s manufacturing capabilities to drive revenue growth. The company is also advancing its five-year agreement with a major U.S. medical products supplier for SoloGard syringes. It is expected to generate $50 million over the contract’s lifespan, with revenue generation starting in the second half of 2025.
Additionally, Sharps Technology Inc. (NASDAQ:STSS) is executing its European expansion strategy. It has progressed with SecureGard safety syringe deliveries under agreements with a leading European distributor and healthcare networks such as Penta Hospitals International.
9. BigBear.ai Holdings Inc. (NYSE:BBAI)
No of hedge fund holders: 13
BigBear.ai Holdings Inc. (NYSE:BBAI) is an AI-powered decision intelligence company specializing in national security, supply chain management, and digital identity solutions.
BigBear.ai Holdings Inc. (NYSE:BBAI) has been awarded a 3.5-year, $13.2 million sole-source contract by the U.S. Department of Defense (DoD). It includes modernizing the ORION Decision Support Platform (DSP) for the Chairman of the Joint Chiefs of Staff’s Directorate for Force Management (J-35). ORION DSP plays a role in automating force management and enhancing data analytics for the Joint Planning and Execution Community (JPEC). This contract reinforces BigBear.ai’s position as a key AI solutions provider for national security.
BigBear.ai Holdings Inc. (NYSE:BBAI) reported Q4 2024 revenue of $43.8 million, reflecting an 8% year-over-year increase from $40.6 million in Q4 2023, driven by additional revenue in Department of Homeland Security and Digital Identity contracts. However, operating expenses surged, with SG&A rising to $22.2 million from $18.2 million in Q4 2023, due in part to the Pangiam acquisition and increased headcount. Looking ahead, BigBear.ai projects full-year 2025 revenue between $160 million and $180 million, with negative single-digit million Adjusted EBITDA.
8. Redfin Corporation (NYSE:RDFN)
No of hedge fund holders: 20
Redfin Corporation (NYSE:RDFN) is a technology-driven real estate company that operates an online marketplace to help individuals buy, sell, and rent homes.
Rocket Companies has announced a $1.75 billion all-stock acquisition of Redfin Corporation (NYSE:RDFN), valuing Redfin at $12.50 per share. The merger integrates Redfin’s 50 million monthly visitors, 1 million active listings, and 2,200+ real estate agents with Rocket’s industry-leading mortgage, title, and servicing business. This will create a seamless homebuying experience from search to close.
Redfin Corporation (NYSE:RDFN) posted full-year 2024 revenue of $1.04 billion, up 7% year-over-year, with gross profit rising 10% to $364.2 million. However, net loss widened to $164.8 million from $130.0 million in 2023, with EPS declining to -$1.36 from -$1.16. Despite this, adjusted EBITDA loss improved significantly to $26.5 million, compared to a $76.4 million loss in 2023, reflecting better cost control.
7. Lucid Group Inc. (NASDAQ:LCID)
No of hedge fund holders: 24
Lucid Group Inc. (NASDAQ:LCID) is a technology-driven electric vehicle company specializing in the design, development, and manufacturing of EVs, powertrains, and battery systems.
On February 25, 2025, Lucid Group Inc. (NASDAQ:LCID) announced a major leadership transition, with Peter Rawlinson stepping down from his roles as CEO and CTO. He transitioned to Strategic Technical Advisor to the Chairman. Marc Winterhoff, the company’s Chief Operating Officer, has been named Interim CEO, while Lucid’s Board initiates a search for a permanent successor. This move comes as Lucid completes the launch of its Gravity SUV and prepares for its next phase of expansion, including the ramp-up of new midsize EV models and the development of its low-cost Atlas drive unit.
Lucid Group Inc. (NASDAQ:LCID) reported full-year 2024 revenue of $807.8 million. This reflects strong delivery growth of 71% year-over-year, with 10,241 vehicles delivered. Despite this growth, the company posted a GAAP net loss of $1.25 per share for the year, with a non-GAAP net loss of $1.04 per share, highlighting financial challenges. Total liquidity remains strong at $6.13 billion, providing a solid cash runway for expansion. Lucid met its 9,000-unit production guidance for 2024 and projects 2025 production to more than double to 20,000 vehicles.
6. Rocket Companies Inc. (NYSE:RKT)
No of hedge fund holders: 30
Rocket Companies Inc. (NYSE:RKT) is a financial technology firm specializing in mortgage, real estate, and personal finance solutions.
Rocket Companies Inc. (NYSE:RKT) has announced a strategic all-stock acquisition of real estate leader Redfin in a deal valued at $1.75 billion. This represents a price of $12.50 per Redfin share. The merger combines Redfin’s strong digital presence with Rocket Companies’ expertise in mortgage and financial services. Redfin brings 50 million monthly visitors, over 1 million active listings, and a network of 2,200+ real estate agents. Rocket Companies adds its industry-leading mortgage origination, title insurance, and servicing operations to the partnership.
Rocket Companies Inc. (NYSE:RKT) reported strong financial performance for the full year 2024, generating total net revenue of $5.1 billion and net income of $636 million, translating to earnings per diluted share of $0.21. Adjusted net income stood at $456 million, or $0.23 per diluted share. RKT also maintained an exceptional net client retention rate of 97%, highlighting its competitive advantage in customer retention and long-term client value creation.
5. American Airlines Group Inc. (NASDAQ:AAL)
No of hedge fund holders: 59
American Airlines Group Inc. (NASDAQ:AAL) is a network air carrier, providing passenger and cargo transportation across a vast domestic and international route network.
American Airlines Group Inc. (NASDAQ:AAL) CEO Robert Isom is set to present at the 2025 J.P. Morgan Industrials Conference on March 11 at 8 a.m. CT. This event provides a key opportunity for investors to gain insights into the airline’s financial performance, strategic initiatives, and market outlook. With recent expansions at Chicago O’Hare and ongoing investments in premium services, technology, and route growth, the presentation may offer updates on revenue trends, cost management, and competitive positioning.
The company reported record revenue of $54.2 billion for full year 2024. It posted a GAAP net income of $846 million, while adjusted net income stood at $1.4 billion, reflecting improved operational efficiency and demand strength. Operating cash flow reached $4 billion, with a record $2.2 billion in free cash flow, reinforcing its financial position. Notably, it achieved its $15 billion debt reduction goal a year ahead of schedule.
4. Palantir Technologies Inc. (NASDAQ:PLTR)
No of hedge fund holders: 64
Palantir Technologies Inc. (NASDAQ:PLTR) is a software company specializing in data analytics and artificial intelligence for counterterrorism and enterprise operations.
Palantir Technologies Inc. (NASDAQ:PLTR) has announced a strategic joint venture with TWG Global to revolutionize AI deployment in financial services, banking, investment management, and insurance. This partnership combines Palantir’s industry-leading AI infrastructure with TWG’s deep expertise in business operations to offer a fully embedded, enterprise-wide AI solution. With Palantir CEO Alex Karp and AI veteran Drew Cukor (former JPMorgan AI head and Pentagon’s Project Maven leader) spearheading the venture, the collaboration is positioned to accelerate AI adoption at scale.
Palantir Technologies Inc. (NASDAQ:PLTR) delivered a strong Q4 2024, reporting revenue of $828 million, a 36% year-over-year increase. U.S. revenue surged 52% YoY to $558 million, with commercial revenue climbing 64% YoY to $214 million. The company closed 129 deals worth at least $1 million, including 32 deals exceeding $10 million, highlighting continued enterprise adoption. Palantir generated $460 million in cash from operations and $517 million in free cash flow.
3. Tesla Inc. (NASDAQ:TSLA)
No of hedge fund holders: 126
Tesla Inc. (NASDAQ:TSLA) is a leading innovator in electric vehicles and sustainable energy solutions. It designs, manufactures, and sells high-performance EVs and energy generation and storage systems.
Tesla Inc. (NASDAQ:TSLA)’s long-anticipated affordable EV is said to enter production by June 2025. It marks a crucial moment for the company as it battles slowing EV adoption, intensifying competition in China, and a volatile stock performance. Analysts across Wall Street view this launch as a “necessity” rather than a luxury. Wedbush’s Dan Ives calls it the “missing catalyst” Tesla needs to reignite demand. The sub-$30,000 model could expand the company’s reach into price-sensitive markets, including India, while countering the dominance of low-cost Chinese rivals like BYD.
Tesla Inc. (NASDAQ:TSLA)’s Q4 2024 earnings fell short of analyst expectations, with revenue reaching $25.71 billion, a modest 2% YoY increase, but below the expected $27.26 billion. Automotive revenue dropped 8% YoY to $19.8 billion. Operating income declined 23% YoY to $1.6 billion, while net income plunged 71% YoY to $2.32 billion, largely due to a one-time tax benefit boosting last year’s numbers. Tesla’s energy segment was a bright spot, with revenue surging 113% YoY to $3.06 billion.
2. Apple Inc. (NASDAQ:AAPL)
No of hedge fund holders: 166
Apple Inc. (NASDAQ:AAPL) is a global leader in technology, designing and manufacturing a wide range of innovative products, including iPhones, Mac computers, iPads, and wearables like the Apple Watch and AirPods.
Apple Inc. (NASDAQ:AAPL) has announced a record-breaking $500 billion investment in the U.S. over the next four years. This underscores its commitment to domestic innovation, AI infrastructure, and high-skilled manufacturing. The move includes a new server manufacturing facility in Houston, doubling the U.S. Advanced Manufacturing Fund to $10 billion, and expanding silicon production across 24 factories in 12 states. With production of Apple chips now underway at TSMC’s Fab 21 in Arizona, the company is strengthening its U.S. supply chain while creating thousands of jobs.
Apple Inc. (NASDAQ:AAPL) reported Q1 FY2025 revenue of $124.3 billion, a 4% year-over-year increase, slightly beating estimates despite a 2.7% drop in iPhone revenue to $69.1 billion. The Services division was the standout, growing 14% to $26.3 billion. This helped offset weaker iPhone sales and an 11.1% decline in China revenue. EPS came in at $2.40, exceeding expectations of $2.35.
1. NVIDIA Corporation (NASDAQ:NVDA)
No of hedge fund holders: 223
NVIDIA Corporation (NASDAQ:NVDA) is a leading full-stack computing infrastructure company specializing in accelerated computing solutions for complex computational challenges.
At CES 2025, NVIDIA Corporation (NASDAQ:NVDA) unveiled major innovations in AI, gaming, and autonomous vehicles. The new GeForce RTX 50 Series GPUs, powered by Blackwell, were launched in January and February. NVIDIA also introduced Cosmos, an AI model for training robots and self-driving cars more efficiently. Project DIGITS, a $3,000 AI desktop was announced. The machine launches in May, bringing supercomputer power to developers.
NVIDIA Corporation (NASDAQ:NVDA) reported record-breaking financial results for FY 2025, with revenue surging 114% YoY to $130.5 billion. GAAP EPS jumped 147% to $2.94, while non-GAAP EPS rose 130% to $2.99. The Data Center segment led the growth, hitting $35.6 billion in Q4 revenue, up 93% YoY. NVIDIA will issue a $0.01 dividend per share on April 2, 2025. The company remains at the forefront of AI and accelerated computing, driving unprecedented growth.
Overall, NVIDIA Corporation (NASDAQ:NVDA) ranks first on our list of the 10 Most Active US Stocks To Buy According to Hedge Funds. While we acknowledge the potential for NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater 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 NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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.
