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 MARA Holdings, Inc. (NASDAQ:MARA) 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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MARA Holdings, Inc. (NASDAQ:MARA)
5-year Beta (monthly): 5.53
Average Volume: 39,062,979
Number of Hedge Fund Holders: 16
MARA Holdings, Inc. (NASDAQ:MARA), formerly known as Marathon Digital Holdings, Inc., is a budding name in the digital asset technology space, particularly within the Bitcoin ecosystem in the United States. The company has made significant strides by optimizing energy usage and focusing on sustainability.
By converting underutilized energy into economic value, it is not just improving its mining operations but is also aligning with the growing demand for environmentally friendly practices in the cryptocurrency industry. It tops our list of the best stocks for day trading.
The company’s approach to mining involves operating large-scale data centers strategically located to access low-cost energy. Its development of proprietary cooling systems and energy harvesting techniques allows them to utilize stranded or wasted energy and then transform it into productive resources. It not only benefits the company’s bottom line but also supports broader environmental goals.
For the second quarter, MARA Holdings (NASDAQ:MARA) reported a remarkable 78% increase in revenues, reaching $145 million in the second quarter of 2024 compared to the same period last year. The company produced 2,058 BTC (1 BTC = $63,314.50 as of September 23), averaging about 23 BTC per day, which indicates strong mining activity.
By the end of the quarter, the company’s balance sheet held 18,488 BTC, and it further expanded its holdings by purchasing an additional $100 million worth of bitcoin. It brought its total holdings to over 20,000 BTC, a clear sign of management’s confidence in Bitcoin’s future as an asset.
Additionally, MARA Holdings (NASDAQ:MARA) recently revised its treasury policy to adopt a full HODL approach, which means it will retain all mined Bitcoin moving forward. The decision shows the company’s strong belief in Bitcoin’s long-term value as the optimal treasury reserve asset.
The company is also making substantial progress on its mining operations as it targets a hash rate of 50 EH/s by the end of 2024. Recently, it energized nearly 18 immersion containers at its Granbury, Texas site and converted a portion of this data center from traditional air cooling to its innovative immersion cooling systems. This transition, expected to be completed by year-end, will likely enhance MARA Holdings’ (NASDAQ:MARA) mining efficiency and capacity.
Overall MARA ranks 1st on our list of the best stocks for day trading. While we acknowledge the potential of MARA 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.