In this article, we will take a look at the 14 best most active stocks to buy now. To skip our analysis of the recent trends, and market activity, you can go directly to see the 5 Best Most Active Stocks to Buy Now.
The United States stocks market continues to rally with optimism related to interest rates. Investor confidence has been on an upward trajectory since the beginning of the month following another Federal Reserve meeting that kept interest rates unchanged at the same level they have been at since July. On November 28, Fed Governor Christopher Waller said that he’s “increasingly confident” that the monetary policy is in the right place to bring inflation down to 2%. Major stock indices have posted consecutive weeks of positive performance with the S&P 500 slated to have one of its best months since July 2022.
S&P 500 Index has gained 8.6% month-to-date, while NASDAQ-100 Index has gone up 11.1% during the same period. A significant portion of the gains in 2023 can be attributed to the rise of the “Magnificent Seven”, i.e., Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), Meta Platforms, Inc. (NASDAQ:META), Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and Tesla, Inc. (NASDAQ:TSLA). These stocks, combined, have soared an average of 70% year-to-date, compared to a measly average 6% for the rest of the S&P 500 constituents. You can read more about the recent market rally and some of the reasons behind it in our recently published article: 11 Stocks Under $50 To Buy Now
The chipmaker NVIDIA Corporation (NASDAQ:NVDA) is one of the biggest beneficiaries of the AI revolution and has seen a massive 230% surge in its share prices year-to-date, surpassing the trillion dollar mark for market capitalization. The company posted another record quarterly revenue, which was more than triple from a year ago, surpassed estimates, and reached a whopping $18 billion.
Our list of 14 best most active stocks to buy now includes some of the most notable names in the stock markets and includes several trillion dollar companies. The shares of these companies have benefited from multiple factors recently, including cost cutting measures, AI revolution, and macroeconomic factors such as slowdown in interest rate increases, among others. The list includes two chipmakers and hardware beneficiaries of AI boom, NVIDIA Corp (NASDAQ:NVDA), and Advanced Micro Devices, Inc. (NASDAQ:AMD), and two trillion-dollar software & internet companies, Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT), competing for the leadership position on the search engine and software side of things.
The month of November also saw some corporate boardroom drama at OpenAI, the maker of ChatGPT generative AI tool and Microsoft Corporation (NASDAQ:MSFT) partner. In a sudden and unexpected move, the Board of Directors of OpenAI fired the company’s CEO Sam Altman on November 17. It was followed by lengthy back and forth, hiring and firing of two interim CEOs, Sam Altman getting hired by Microsoft Corporation (NASDAQ:MSFT), and ultimately the return of Sam Altman to the position of CEO with some changes to the Board of Directors, on November 22. The saga has raised questions about the safety of recent advancements in the AI landscape.
Our list also includes other leading companies such as Apple Inc. (NASDAQ:AAPL), Amazon.com, Inc. (NASDAQ:AMZN), and Tesla, Inc. (NASDAQ:TSLA), among others.
Methodology
We first identified the 50 most actively traded mid and large-cap stocks over the last three months and then picked the top 14 of these according to Insider Monkey’s proprietary hedge fund sentiment data. The hedge fund sentiment is based on Insider Monkey’s database of 910 funds as of Q3 2023. These stocks have been ranked according to the average trading volume over the last three months.
14. Wells Fargo & Company (NYSE:WFC)
Average 3-month Volume: 15.73 million
Number of Hedge Fund Holders: 77
Founded in 1852, Wells Fargo & Company (NYSE:WFC) is a leading financial services company that provides banking, investment and mortgage products and services, as well as consumer and commercial finance services. It holds nearly $1.9 trillion in assets and is one of the leading financial services providers in the United States.
On October 13, Wells Fargo & Company (NYSE:WFC) released its Q3 2023 financial results. Its total revenue increased by 7% y-o-y to $20.9 billion, while net income surged by 61% y-o-y to $5.8 billion. The normalized EPS of $1.48 exceeded consensus estimates by $0.26.
Following the earnings release, on October 16, BMO Capital raised the price target on Wells Fargo & Company (NYSE:WFC) shares to $54 from $52 and maintained a ‘Market Perform’ rating for the shares.
As of Q3 2023, the shares of Wells Fargo & Company (NYSE:WFC) were owned by 77 prominent hedge funds, with the aggregate shares held by these hedge funds valued at $4.3 billion.
13. Citigroup Inc. (NYSE:C)
Average 3-month Volume: 17.42 million
Number of Hedge Fund Holders: 79
Founded in 1812, New York-based Citigroup Inc. (NYSE:C) is a leading banking and financial services provider offering a broad range of financial products and services in nearly 160 countries and jurisdictions.
On November 20, Citigroup Inc. (NYSE:C) announced the successful completion of its the sale and full migration of its Indonesia consumer businesses to UOB Indonesia. The sale is part of the company’s strategy to exit from its consumer franchises in 13 markets across Asia Pacific and EMEA which is expected to release approximately $7 billion of allocated tangible common equity over time. This sale marks the completion of sales in nine of those markets.
Citigroup Inc. (NYSE:C) announced its intention to pursue an IPO of its consumer, small business and middle market banking operations in Mexico. The company has also restarted the exit process for the consumer banking business in Poland.
As of Q3 2023, 79 of the 910 hedge funds tracked by Insider Monkey were long Citigroup Inc. (NYSE:C) shares and held shares worth a combined total of $7.0 billion. Warren Buffet’s Berkshire Hathaway was its biggest shareholder with ownership of 55.2 million shares valued at $2.3 billion.
12. Exxon Mobil Corporation (NYSE:XOM)
Average 3-month Volume: 19.09 million
Number of Hedge Fund Holders: 79
Irving, Texas-based Exxon Mobil Corporation (NYSE:XOM) is one of the largest publicly traded international energy and petrochemical companies. It is one of the largest integrated fuels, lubricants, and chemical companies in the world.
On October 11, Exxon Mobil Corporation (NYSE:XOM) announced a definitive agreement to acquire Pioneer Natural Resources (NYSE:PXD) in an all-stock transaction valued at $59.5 billion. The acquisition is expected to transform the company’s upstream portfolio with significant additions to its Permian footprint.
Exxon Mobil Corporation (NYSE:XOM) is the only stock on our list of 14 best most stocks to buy now that belongs to the energy industry. The stock has been a consistent component of hedge fund portfolios. As of Q3 2023, its shares were held by 103 of the 910 hedge funds tracked by Insider Monkey, valued at $3.7 billion. Jean-Marie Eveillard’s First Eagle Investment Management was the largest shareholder on record with ownership of 13.2 million shares valued at $1.6 billion.
11. Uber Technologies, Inc. (NYSE:UBER)
Average 3-month Volume: 19.44 million
Number of Hedge Fund Holders: 146
San Francisco, California-based, Uber Technologies, Inc. (NYSE:UBER) provides technology platforms matching consumers looking for rides and independent ride services providers. It also offers other forms of transportation including public transit, bikes, and scooters. Other offerings include food delivery on demand, freight services, business fleet services, and same day delivery options.
On November 7, Uber Technologies, Inc. (NYSE:UBER) released its financial results for Q3 2023. Even though the company narrowly missed both the top and bottom line consensus estimates, it showed strength in other key operational metrics such as gross bookings which exceeded the company’s guidance at $35.3 billion, up 21% y-o-y.
As of Q3 2023, Uber Technologies, Inc. (NYSE:UBER) shares was held by 146 hedge funds, with the total shares held by these funds valued at $8.1 billion.
RiverPark Advisors, an investment advisory firm, made the following comment about Uber Technologies, Inc. (NYSE:UBER) in its RiverPark Large Growth Fund Q3 2023 investor letter:
“UBER remains the undisputed global leader in ride sharing, with a greater than 50% share in every major region in which it operates. The company is also a leader in food delivery, where it is number one or two in the more than 25 countries in which it operates. Moreover, after a history of losses, the company is now solidly profitable with the potential for substantial margin expansion and free cash flow generation to come. We view UBER as more than just ride sharing and food delivery, but also as a global mobility platform with the ability to sell to its 130 million users (by comparison, Amazon Prime has 200 million members) and penetrate new markets of on-demand services, such as package and grocery delivery, travel, and worker staffing for shift work. Given its $4.3 billion of unrestricted cash and $4.4 billion of investments, the company’s enterprise value of $95 billion equates to just over 20x next year’s estimated free cash flow.”
10. Meta Platforms, Inc. (NASDAQ:META)
Average 3-month Volume: 19.84 million
Number of Hedge Fund Holders: 234
Menlo Park, California-based Meta Platforms, Inc. (NASDAQ:META) is a technology conglomerate formerly known as Facebook, Inc. Its businesses are reported under two segments: Family of Apps – comprising social media web and smartphone apps Facebook, Instagram, Messenger, and WhatsApp; and Reality Labs – comprising augmented and virtual reality products including hardware, software, and content.
Meta Platforms, Inc. (NASDAQ:META) recorded a strong performance in the third quarter of the year. Its revenue increased by 23% y-o-y to $34 billion while net income surged by a whopping 164% y-o-y to $11.6 billion. The normalized EPS of $4.39 surpassed the consensus estimates by $0.79.
Following the earnings release, Truist Securities analyst Robert Zeller raised the price target for Meta Platforms, Inc. (NASDAQ:META) shares to $405 from $390 and maintained a ‘Buy’ rating.
Meta Platforms, Inc. (NASDAQ:META) ranks #3 on our list of 14 best most active stocks to buy now based on the number of hedge funds holding its shares as of September 30, 2023. The shares of the social media giant were owned by 234 hedge funds with a total value of $35.2 billion. Prominent hedge funds, such as Arrowstreet Capital, Tiger Global Management LLC, and GQG Partners, held the highest number of its shares among hedge funds.
9. Microsoft Corporation (NASDAQ:MSFT)
Average 3-month Volume: 23.73 million
Number of Hedge Fund Holders: 306
Redmond, Washington-based Microsoft Corporation (NASDAQ:MSFT) is a leading technology company with products include operating systems, cross-device productivity applications, server applications, business solution applications, desktop and server management tools, software development tools, and video games.
Microsoft Corporation (NASDAQ:MSFT) is among the leaders in the AI race following its partnership with OpenAI, the creator of Chat GPT – an artificial intelligence powered chatbot. Microsoft Corporation (NASDAQ:MSFT) is using its AI capabilities to improve its existing products and services including Bing Search, Cloud, as well as its Office Suite.
In its Baron Technology Fund Q3 2023 investor letter, Baron Funds, an investment management company, made the following comments about Microsoft Corporation (NASDAQ:MSFT):
“Looking at the big picture, Microsoft continues to execute at a high level, navigating a challenging macro backdrop while aggressively investing in long-term growth, and we remain confident that Microsoft is well positioned to leverage AI over the medium to long term as it infuses Open AI and other generative AI technologies across its entire product portfolio.”
As of Q3 2023, Microsoft Corporation (NASDAQ:MSFT) ranks highest on our list of 14 best most active stocks to buy now in terms of hedge fund sentiment as it was the most sought-after stock among the 910 hedge funds tracked by Insider Monkey. 306 of these hedge funds held shares in the software giant, valued at $72 billion.
8. Kenvue, Inc. (NYSE:KVUE)
Average 3-month Volume: 26.11 million
Number of Hedge Fund Holders: 84
New Jersey-based Kenvue, Inc. (NYSE:KVUE) is the world’s largest pure-play consumer health company by revenue. Formerly the Consumer Healthcare division of Johnson & Johnson (NYSE:JNJ), Kenvue, Inc. (NYSE:KVUE) is home to iconic brands such as Aveeno®, BAND-AID® Brand Adhesive Bandages, Johnson’s®, Listerine®, Neutrogena®, and Tylenol®, among others.
On October 26, Kenvue, Inc. (NYSE:KVUE) released its financial results for Q3 2023 which were nearly in-line with the consensus estimates across the revenue and normalized EPS figures and amounted to $3.9 billion and $0.31, respectively.
Following the earnings release, Canaccord Genuity analyst Susan Anderson lowered the price target on Kenvue, Inc. (NYSE:KVUE) shares to $27 from $28 and maintained a ‘Buy’ rating for the shares. The target price represents a potential upside of 33.93% based on the share price on November 27.
7. Alphabet Inc. (NASDAQ:GOOGL)
Average 3-month Volume: 27.15 million
Number of Hedge Fund Holders: 221
Alphabet Inc. (NASDAQ:GOOGL), based in Mountain View, California, is the parent company of several companies including Google, Verily Life Sciences, GV (formerly Google Ventures), Calico, and X-the moonshot factory. Majority of its revenue is generated by Google Services which comprises of ads, Android, Chrome, hardware, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube.
On October 24, Alphabet Inc. (NASDAQ:GOOGL) released financial results for the three months ended September 30. Its revenues increased by 11% y-o-y to $76.7 billion while net income surged by 42% y-o-y to $19.7 billion.
Following the earnings release, Oppenheimer analyst Jason Helfstein reiterated an ‘Outperform’ rating for Alphabet Inc. (NASDAQ:GOOGL) shares with a price target of $160 per share.
This is what Wedgewood Partners, an investment management company, had to say about Alphabet Inc. (NASDAQ:GOOGL) in its Q3 2023 investor letter:
“Alphabet was a top contributor to performance as search revenues accelerated during their second quarter. This improved performance flies in the face of fears that demand for the Company’s advertising inventory and core search functionality would be diluted by the Company’s own generative-AI offerings and outside substitutes. Alphabet subsidiaries have been at the vanguard of artificial intelligence for more than a decade. The Company has spent almost $150 billion on research and development over just the past five years, and today over 80% of the Company’s advertising customers use an AI-enabled tool when they run their Google Search and YouTube campaigns. Thus, Alphabet is certainly not “behind the curve” in any way, shape, or form when it comes to AI. Quite the contrary, the Company has ample room to rationalize spending to drive better returns on investments and increase capital returns to shareholders at these relatively attractive forward earnings multiples.”
6. Bank of America Corporation (NYSE:BAC)
Average 3-month Volume: 45.16 million
Number of Hedge Fund Holders: 88
Based in Charlotte, North Carolina-based, Bank of America Corporation (NYSE:BAC) is a leading financial services company offering full range of banking, investing, asset management and other financial and risk management products and services to individual consumers, small and middle-market businesses, and large corporations. It serves nearly 68 million consumer and small business clients in the United States.
On October 18, Oppenheimer analyst Chris Kotowski raised the price target on Bank of America Corporation (NYSE:BAC) shares to $49 from $48 and maintained an ‘Outperform’ rating for the shares. The target price increase followed a strong quarterly earnings release which showed a 3% y-o-y increase in total revenue to $25.2 billion and a 10% y-o-y increase in net income to $7.8 billion.
According to the Insider Monkey data on 910 leading hedge funds, 88 hedge funds were long Bank of America Corporation (NYSE:BAC) shares as of Q2 2023. Warren Buffet’s Berkshire Hathaway was the largest hedge fund shareholder with ownership of 1.03 billion shares valued at $28.3 billion.
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Disclosure: None. 14 Best Most Active Stocks to Buy Now is originally published on Insider Monkey.