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 XPeng Inc. (NYSE:XPEV) 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).

XPeng Inc. (NYSE:XPEV)

5-year Beta (monthly): 2.74

Average Volume: 11,348,479

Number of Hedge Fund Holders: 17

XPeng Inc. (NYSE:XPEV), also known as Xiaopeng Motors, is carving its name in the electric vehicle market as one of the leading manufacturers based in China. Founded in 2014, the company has established itself by creating smart EVs that incorporate cutting-edge technologies such as AI and connectivity features.

Its lineup includes well-received models like the P7 sedan, G3 SUV, and the newly launched G6, all designed with a strong emphasis on performance, safety, and user experience. The company vehicles come equipped with its proprietary XPILOT technology, which improves driving through advanced features like navigation, parking assistance, and adaptive cruise control.

At a stake value of $191.728 million, 17 hedge funds held positions in XPeng (NYSE:XPEV) in the second quarter. As of June 30, D E Shaw is the top shareholder in the company and has a position worth $91.91 million.

In August, the company introduced the Mona M03, an electric sedan positioned to compete directly with Tesla’s Model 3. The launch event in Beijing highlighted the M03’s attractive starting price of RMB 119,800, making it the most affordable model in its range.

The market response was overwhelmingly positive, with the company reporting over 10,000 firm orders within just 52 minutes of the launch. The strong demand signals strong consumer interest and positions the M03 as a significant contender in the EV landscape. It ranks 8th on our list of the best stocks for day trading.

On August 30, XPeng (NYSE:XPEV) began delivering the first batch of Mona M03s at the Chengdu Auto Show, which marked an important step in its journey into its second decade. The M03 is designed to appeal to younger consumers as it features modern styling and advanced intelligence while outperforming expectations for vehicles priced around RMB 200,000. The model is not just a new entry, it represents a fresh flagship for the company in the evolving smart mobility era.

Recent analyst upgrades reflect growing confidence in the company’s potential. On September 4, JPMorgan analyst Nick Lai upgraded XPeng (NYSE:XPEV) to Overweight from Neutral with a price target of $11.50, up from $8.

Lai forecasts a significant rise in quarterly deliveries, estimating that the company will boost its shipments from around 45,000 units in the third quarter to approximately 80,000 units in the fourth quarter, thanks in part to the introduction of the Mona M03 and the P7 plus. The anticipated increase could provide a strong foundation for further growth into 2025. As the company continues to innovate and expand its product offerings, it is well-positioned to capitalize on the growing demand for EVs.

Overall XPEV ranks 8th on our list of the best stocks for day trading. While we acknowledge the potential of XPEV 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.