We recently compiled a list of the 10 Best Stocks For Day Trading. In this article, we are going to take a look at where CleanSpark, Inc. (NASDAQ:CLSK) stands against the other day trading stocks.
At the press conference held on September 18, Federal Reserve Chair Jerome Powell reiterated the central bank’s commitment to its dual mandate of achieving maximum employment and price stability. He noted that the U.S. economy has remained strong, with GDP increasing at a steady rate of 2.2% in the first half of the year, while inflation has significantly moderated.
While the labor market has softened somewhat, it continues to show strength, with the unemployment rate still relatively low at 4.2%. Inflationary pressures have reduced, although inflation remains slightly above the 2% target, as core PCE prices have risen by 2.7% over the past year.
In light of these developments, the Federal Open Market Committee (FOMC) chose to lower its policy interest rate by 50 basis points, a move intended to ease monetary policy. Powell explained that this action reflects growing confidence that labor market strength can be maintained, while inflation continues to decrease toward the Fed’s target. Powell emphasized the Fed’s flexibility in its approach and noted that future rate changes will depend on incoming data and the evolving economic landscape.
When questioned about the likelihood of future rate cuts, Powell said that each decision would be data-driven and made on a meeting-by-meeting basis. The Summary of Economic Projections (SEP) suggests a federal funds rate of 4.4% by the end of the year, with further reductions expected in the years ahead, which points to expectations of lower inflation and slightly higher unemployment.
Expert Opinion on Current Economic Conditions
At a CNBC interview on September 23, Stephanie Link, Chief Investment Strategist and Portfolio Manager at Hightower said that the market’s current state of confidence is driven by the belief that the Fed is successfully managing a soft landing and preparing for a cycle of rate cuts. She expects better-than-expected economic growth and earnings forecasts, despite the ongoing volatility in the market.
Link noted the strong recent data, which include improved retail sales, manufacturing, and housing permits, along with jobless claims at a four-month low. This backdrop supports earnings growth and any market weakness presents a buying opportunity, especially in sectors like technology, financials, and industrials.
When asked about her stock picks, Link highlighted Exxon, as she mentioned its low valuation, attractive forward earnings, and the recent acquisition of Pioneer. She expects this acquisition to drive significant production growth and sees multiple upcoming catalysts, such as an analyst meeting in December and new projects next year.
Although oil prices remain volatile due to geopolitical factors in the Middle East, Link downplayed the concerns about higher prices and said that the oil giant generates substantial profits even at lower oil prices. She said that the sector’s ability to return cash to shareholders through dividends and buybacks sees further upside in energy stocks despite the sector lagging recently.
Our Methodology
For this article, we identified over 35 stocks with a beta of over 2.5. Next, we narrowed the list to 10 stocks with the highest 5-year beta and average trading volume of over 10 million. The 10 best stocks for day trading are listed in ascending order of their beta. We also mentioned the hedge fund sentiment around each stock which was taken from Insider Monkey’s database of over 900 elite 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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CleanSpark, Inc. (NASDAQ:CLSK)
5-year Beta (monthly): 4.19
Average Volume: 25,300,855
Number of Hedge Fund Holders: 20
One of the best stocks for day trading, CleanSpark, Inc. (NASDAQ:CLSK) is a leading sustainable Bitcoin mining and energy technology company. Often referred to as “America’s Bitcoin Miner,” it stands out for its emphasis on using low-carbon energy sources, such as solar, nuclear, hydroelectric, and wind power, to fuel its Bitcoin mining operations across various data centers.
On September 11, the company announced a significant move to expand its footprint by entering into agreements to acquire seven Bitcoin mining facilities in Knoxville, Tennessee, for a total of $27.5 million, translating to about $324,000 per megawatt. The acquisition is part of the company’s strategy to secure top-tier infrastructure at competitive prices.
The anticipated operational hashrate from these facilities is expected to reach 5 exahashes per second (EH/s) once the latest S21 pro miners are installed. The seven sites, which collectively amount to 85 megawatts, range in size from 10 to 20 megawatts, adding significant capacity to CleanSpark’s (NASDAQ:CLSK) operations.
Additionally, on the same day, the company finalized its acquisition of a 45 MW site in Wyoming, which is projected to contribute another 3 EH/s to its hashrate. The facility will incorporate immersion-cooled Bitcoin mining data centers, designed to support the latest generation of S21 immersion XPs, which improves the efficiency and effectiveness of its mining efforts.
Further strengthening its portfolio, the company announced the acquisition of two more Bitcoin mining sites near Clinton, Mississippi, on September 17. With a combined purchase price of $5.775 million, these sites will support 16.5 MW and are currently partially completed.
The deal includes funding for the final stages of site construction, with delivery expected by December 1, 2024. Upon completion, the Mississippi sites will house S21 pro miners, yielding an additional combined operating hashrate of approximately 1 EH/s, which will bring the company’s total capacity in the state to 60.5 MW.
With these strategic acquisitions, CleanSpark’s (NASDAQ:CLSK) operational capacity has significantly increased, totaling 211.5 MW of new capacity. This represents a nearly 38% jump and sets the company on track to meet its ambitious targets of 37 EH/s by the end of 2024 and 50 EH/s by 2025. The company is not only advancing its capabilities in the Bitcoin mining sector but is also setting a strong example in sustainable energy practices.
Overall CLSK ranks 3rd on our list of the best stocks for day trading. While we acknowledge the potential of CLSK as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is promising and trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
