In this article, we will take a look at the 5 best high beta stocks to buy now. To read our analysis of the recent market trends and market activity, you can go to the 12 Best High Beta Stocks to Buy Now.
5. RH (NYSE:RH)
Number of Hedge Fund Holders: 48
Beta Value: 2.27
Corte Madera, California-based RH (NYSE:RH) is a luxury lifestyle and home furnishings company offering its products to customers through retail galleries, source books and online at multiple stores including RH.com, and RHContemporary.com.
RH (NYSE:RH) reported its financial results for Q2 2023 on September 7. It generated $800.5 million revenue and $76.5 million net income which translated to an adjusted EPS of $3.93, $1.33 more than the consensus.
Following the earnings release, Citigroup analyst Steven Zaccone lowered the price target on RH (NYSE:RH) shares to $440 from $460 but maintained a ‘Buy’ rating. The target price represents a potential upside of 101.49% based on the share price on October 31.
4. Caesars Entertainment Inc. (NASDAQ:CZR)
Number of Hedge Fund Holders: 65
Beta Value: 2.9
Founded in 1937, Las Vegas, Nevada-based Caesars Entertainment Inc. (NASDAQ:CZR) is a leading casino entertainment provider offering diversified gaming, entertainment and hospitality amenities, one-of-a-kind destinations, and a full suite of mobile and online gaming and sports betting experiences.
On October 31, Caesars Entertainment Inc. (NASDAQ:CZR) reported the financial results for the third quarter. Its revenue increased by 4% y-o-y to $3.0 billion, while it generated a net income of $74 million. It reported a normalized EPS of $0.31 for the quarter, which exceeded the consensus by $0.04.
Following the earnings release, Barclays lowered the price target on Caesars Entertainment Inc. (NASDAQ:CZR) shares to $67 from $75 but maintained an ‘Overweight’ rating. The price target represents a potential upside of 66.67% based on the share price on October 31.
According to the Insider Monkey data on 910 leading hedge funds, 65 hedge funds were long Caesars Entertainment Inc. (NASDAQ:CZR) shares as of Q2 2023, with the total shares held by hedge funds valued at $1.2 billion. Parag Vora’s HG Vora Capital Management was the largest shareholder on record with ownership of 6.0 million shares valued at $306 million.
3. Block, Inc. (NYSE:SQ)
Number of Hedge Fund Holders: 66
Beta Value: 2.34
Formerly known as Square, Inc., San Francisco, California-based Block, Inc. (NYSE:SQ) is a global technology company with a focus on financial services. It comprises of Square, Cash App, TIDAL, and TBD, technology solutions that facilitate financial services for individuals and businesses of all sizes.
The only pure technology company on our list of 12 best high beta stocks to buy now, Block, Inc. (NYSE:SQ) shares have taken a battering this year with prices down nearly 36% since the beginning of the year, as of October 31. The tech company offers more than 81% upside potential from the current price levels based on the average analyst price target of $73.01.
After a “mixed” quarterly performance report released on November 2, Needham lowered the price target on Block, Inc. (NYSE:SQ) shares to $77 from $82, while maintaining a ‘Buy’ rating for the shares.
As of Q2 2023, Block, Inc. (NYSE:SQ) was among the favorites of hedge funds, with 66 of the 910 hedge funds tracked by Insider Monkey holding its shares valued at a whopping $3.8 billion. Cathie Wood’s ARK Investment Management was its biggest shareholder with ownership of 10.7 million shares valued at $714 million.
2. Tenet Healthcare Corporation (NYSE:THC)
Number of Hedge Fund Holders: 74
Beta Value: 2.2
Dallas, Texas-based, Tenet Healthcare Corporation (NYSE:THC) is a diversified healthcare services company. Its network includes 61 hospitals and 575 other facilities, including surgical hospitals, ambulatory surgery centers and other outpatient facilities.
On October 30, Tenet Healthcare Corporation (NYSE:THC) released its financial results for the third quarter of 2023. Its net operating revenues increased by 5.5% y-o-y to $5.1 billion, while it reported a net income of $101 million. The normalized EPS was recorded at $1.44 for the quarter, which exceeded the consensus by $0.24.
As of Q2 2023, 74 of the 910 hedge funds tracked by Insider Monkey were long Tenet Healthcare Corporation (NYSE:THC), holding shares worth $2.7 billion. Larry Robbins’ Glenview Capital was the largest shareholder with ownership of 6.5 million shares valued at $526 million. It was followed by other prominent hedge fund shareholders such as Millennium Management, Marshall Wace LLP, and Citadel Investment Group, among others.
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 79
Beta Value: 2.29
Based in Austin, Texas, Tesla, Inc. (NASDAQ: TSLA), designs, develops, manufactures, sell and leases fully electric vehicles and energy generation and storage solutions. Its current portfolio of products includes Model 3 and Model S sedans, Model Y and Model X SUVs, while upcoming products include Cybertruck, Tesla Roadster and Tesla Semi – a light commercial vehicle.
Tesla, Inc. (NASDAQ: TSLA) produced 430,488 vehicles in Q3 2023 and delivered more than 435,000 vehicles during the same period. The company has six large scale manufacturing facilities across the world, including its first plant in California, and gigafactories across Nevada, New York, Shanghai, Texas, and Berlin.
Tesla, Inc. (NASDAQ:TSLA) is the best high beta stock to buy now based on hedge fund sentiment. Its shares were held by 79 hedge funds with total value of $6.5 billion, as of June 30.
In its Q2 2023 investor letter, Baron Funds, an investment management company, made the following comments about Tesla, Inc. (NASDAQ:TSLA):
“We continue to believe that Tesla is only scratching the surface of its potential. We regard announced partnerships between Tesla and its competitors in the quarter as important. In early June, Tesla agreed to provide Ford Motors access to Tesla’s electric vehicle (EV) charging technology and network. Other traditional and pure EV manufacturers, including General Motors, Rivian, and Volvo, quickly followed suit. We expect additional charging partnerships to ensue. In our view, these relationships validate Tesla’s charging technology and infrastructure as superior to other standards. Consolidation around a single technology should accelerate charging infrastructure deployment, diminish the risk of Tesla’s technology becoming obsolete, and lessen a key concern of hesitant EV purchasers.”
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