In this article, we discuss the 5 most volatile stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to 16 Most Volatile Stocks To Buy Now.
5. Royal Caribbean Cruises Ltd (NYSE:RCL)
Number of Hedge Fund Holders: 41
Beta Rating as of December 30: 2.56
Royal Caribbean Cruises Ltd (NYSE:RCL) operates as a cruise company worldwide. On December 21, investment advisory Argus maintained a Buy rating on Royal Caribbean Cruises Ltd (NYSE:RCL) stock and raised the price target to $142 from $95.
At the end of the third quarter of 2023, 41 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in Royal Caribbean Cruises Ltd (NYSE:RCL), compared to 45 in the preceding quarter worth $1.5 billion.
4. Block, Inc. (NYSE:SQ)
Number of Hedge Fund Holders: 60
Beta Rating as of December 30: 2.57
Block, Inc. (NYSE:SQ) creates tools that enable sellers to accept card payments and provides reporting and analytics, and next-day settlement. On December 12, investment advisory Mizuho maintained a Buy rating on Block, Inc. (NYSE:SQ) stock and raised the price target to $99 from $90.
At the end of the third quarter of 2023, 60 hedge funds in the database of Insider Monkey held stakes worth $2.3 billion in Block, Inc. (NYSE:SQ), compared to 66 in the preceding quarter worth $3.7 billion.
In its Q3 2023 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Block, Inc. (NYSE:SQ) was one of them. Here is what the fund said:
“Block, Inc. provides point-of-sale technology to small businesses and operates the Cash App ecosystem of financial services for individuals. Shares fell due to a confluence of factors, including slowing growth, a brief system outage, and the departure of a key executive who ran the Square business segment. Ongoing investor concerns over consumer spending and a recession did not help sentiment. Nevertheless, Block reported strong quarterly results with 27% gross profit growth and adjusted EBITDA more than doubling. We believe Block’s businesses are resilient, and greater management focus on cost discipline should drive further margin expansion. We continue to own the stock due to Block’s long runway for growth, durable competitive advantages, and track record of innovation.”
3. Shopify Inc. (NYSE:SHOP)
Number of Hedge Fund Holders: 69
Beta Rating as of December 30: 2.28
Shopify Inc. (NYSE:SHOP) is a commerce company that provides a commerce platform and services worldwide. On December 6, investment advisory RBC Capital maintained an Outperform rating on Shopify Inc. (NYSE:SHOP) stock and raised the price target to $100 from $80.
Among the hedge funds being tracked by Insider Monkey, St. Petersburg, Florida-based investment firm ARK Investment Management is a leading shareholder in Shopify Inc. (NYSE:SHOP) with 6.9 million shares worth more than $379 million.
In its Q3 2023 investor letter, Fred Alger Management, an asset management firm, highlighted a few stocks and Shopify Inc. (NYSE:SHOP) was one of them. Here is what the fund said:
“Shopify Inc. (NYSE:SHOP) operates a cloud-based commerce platform designed for small and medium-sized businesses. Its software is used by merchants to run business across all sales channels, including web, tablet and mobile storefronts, social media storefronts, and brick-and-mortar and pop-up shops. The firm’s platform provides merchants with a single view of business and customers and enables them to manage products and inventory, process orders and payments, build customer relationships and leverage analytics and reporting. While the company’s shares nearly doubled in the first half of 2023, market sentiment deteriorated towards unprofitable technology companies during the third quarter, as shares detracted from performance. Despite the share price decline, we continue to remain positive on the company’s asset-light model within the vast eCommerce market and believe that we are in the early innings of the company’s renowned focus on operational efficiency and profitability.”
2. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders: 73
Beta Rating as of December 30: 2.05
Freeport-McMoRan Inc. (NYSE:FCX) is an American mining company that explores and mines for copper, gold, silver, and other metals. In late October, investment advisory Argus maintained a Buy rating on Freeport-McMoRan Inc. (NYSE:FCX) stock and lowered the price target to $38 from $47.
At the end of the third quarter of 2023, 73 hedge funds in the database of Insider Monkey held stakes worth $3.3 billion in Freeport-McMoRan Inc. (NYSE:FCX), compared to 66 in the preceding quarter worth $1.3 billion.
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 81
Beta Rating as of December 30: 2.32
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company. On December 18, investment advisory RBC Capital maintained an Outperform rating on Tesla, Inc. (NASDAQ:TSLA) stock and lowered the price target to $300 from $301.
At the end of the third quarter of 2023, 81 hedge funds in the database of Insider Monkey held stakes worth $5.8 billion in Tesla, Inc. (NASDAQ:TSLA), compared to 79 in the previous quarter worth $6.5 billion.
Here is what Baron Fund has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q2 2023 investor letter:
“Many factors contributed to the strong performance of our largest Disruptive Growth position, Tesla, Inc. (NASDAQ:TSLA), in the period. Investors’ concerns regarding Tesla in 2022 continue to dissipate, and the company’s business has continued to grow materially, although at below peak margins. Tesla’s deliveries in China are recovering. The company’s newest factory in Texas has ramped production and should contribute to improved domestic sales and margins. U.S. government policies have lowered the cost to own Tesla vehicles, while also reducing the company’s battery production expenses.
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. EV adoption is at a tipping point. And Tesla, with its approximately 60% domestic market share of EVs, should be the most important beneficiary of this shift…” (Click here to read the full text)
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